{"id":217606,"date":"2022-12-08T20:33:03","date_gmt":"2022-12-08T15:03:03","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=217606"},"modified":"2022-12-08T20:33:03","modified_gmt":"2022-12-08T15:03:03","slug":"a-green-tax-would-help-augment-government-revenue","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/a-green-tax-would-help-augment-government-revenue\/","title":{"rendered":"A green tax would help augment government revenue"},"content":{"rendered":"\n

Source<\/strong>: The post is based on the article\u00a0\u201cA green tax would help augment government revenue\u201d <\/strong>published in the Livemint <\/b>on 8th<\/sup>\u00a0November 2022<\/strong>.<\/p>\n

Syllabus<\/strong>: GS \u2013 3 \u2013 changes in industrial policy and their effects on industrial growth.<\/p>\n

Relevance<\/strong>: About levying a green tax.<\/p>\n

News<\/strong>: The government has been looking at different ways of augmenting its revenues in its fight against climate change. Levying a green tax is one such move.<\/p>\n

Why does India need to levy a green tax?<\/h5>\n

1)<\/strong> India\u2019s top 4,000 odd companies had a combined turnover of roughly \u20b9100 trillion in 2021-22. On average, if the green tax rate is, 0.5% of turnover, the government can rake in an amount of \u20b950,000 crores annually.<\/p>\n

2)<\/strong> As the government is already planning to issue green bonds for projects that are environmentally compliant, a green tax would complement this effort.<\/p>\n

3) <\/strong>Make businesses pay for the damage caused to the environment.<\/p>\n

4)<\/strong> Some companies have been observed to indulge in \u2018greenwashing\u2019 just to meet CSR obligations. A separate tax would defeat greenwashing.<\/p>\n\n\n\n
Must read: Green Bonds: Benefits and Challenges \u2013 Explained, pointwise<\/a><\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
What India has to do before levying a green tax?<\/h5>\n

Every economic activity adds its bit to pollution and can be brought under the tax net. The Centre needs to commission research agencies<\/strong> to independently evaluate the emissions of all industries and set standards<\/strong> for the same.<\/p>\n

No need to be uniform<\/strong>: The green tax need not be uniformly applied, and its rate could vary from 0.1% to 2%, depending on the industry concerned. As the sales of these companies or industries grow, they would automatically yield higher revenues to the government.<\/p>\n

Focus on industrial groups<\/strong>: Ideally, India\u2019s green tax should be levied on a company based on emissions that can be measured. As it is difficult to assess, India can slot companies into industry groups and levy taxes on them.<\/p>\n

Focus on consumer<\/strong>: Consumers of products and services that are environmentally unfriendly should be made accountable and should pay for the same. For instance, levying green tax on older vehicles.<\/p>\n\n\n\n
Read more: Green tax on vehicles older than 15 years<\/a><\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

Source: The post is based on the article\u00a0\u201cA green tax would help augment government revenue\u201d published in the Livemint on 8th\u00a0November 2022. Syllabus: GS \u2013 3 \u2013 changes in industrial policy and their effects on industrial growth. Relevance: About levying a green tax. News: The government has been looking at different ways of augmenting its… Continue reading A green tax would help augment government revenue<\/span><\/a><\/p>\n","protected":false},"author":10311,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[216,10501],"class_list":["post-217606","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-3","tag-live-mint","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/217606","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10311"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=217606"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/217606\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=217606"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=217606"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=217606"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}