MPs have asked the Treasury to use the money from fuel duty to reduce pollution and the price of the public transport fares.
The Environmental Audit Committee claimed that the Government appears to be using the money collected from green taxation as a way to increase revenue.
The public seems to have no faith in environmental taxes as the recent Government budgets risked creating the impression that taxes on flights and fuel are just a way of raising money.
Joan Walley, the committee's chairperson, has said the green taxes are "simply being used to pinch extra pennies from people".
A part of the green tax should be assigned for reducing bus and train fares, controlling pollution and investing in less-polluting alternatives, the report suggested.
It also added that green taxes needed to be straightforward and fair in order to regain public support.
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