Carbon Tax: Day by day with the increasing emission of gases having carbon material in to the environment is triggering to contamination extremely. Eventually this would result in a factor reducing the standard of life of the, humanity. Despite having alternative source of energy people are utilizing coal, gas, gas, diesel type of fuels which releases the big quantity of carbon into the environment.
In order to curb this federal governments of lots of nations have been continually carrying out different policies and programs. Carbon tax is one of those ways executed by federal government.
What is Carbon Tax?
Carbon tax is a tax imposed on the fuels & associated contents which release carbon dioxide in to the environment. For example Fuel, Diesel, LPG, Coal etc., this will bring a demotivated behavior in the people utilizing the carbon causing sources of energy.
The primary goal of this tax is to minimize the material of the carbon in the environment. Hence controlling the pollution of the environment, especially air contamination.
Increasing material of the carbon in the environment has actually become a danger to humanity by diminishing the ozone layer of the earth. Carbon tax is primarily intended to bring down the carbon launching sources so that the possibility of the above said issues will not emerge.
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How does it work?
Typically carbon tax rate is repaired based on the volume of the carbon dioxide emitted by burning the fuel. It is really hard to determine this among numerous enterprises using various sources of energy as they may be utilizing various mix of sources as per their convenience.
So, some federal government in the world enforce this tax on the basis of the volume of the fuel taken in.
Currently in India there is no carbon tax. There are some taxes and tasks which are imposed for the exact same function as carbon tax. Coal cess can be stated as a form of carbon tax in India.
In his budget speech of union spending plan 2015-16 Mr Jaitely said that “Fundamental excise duty rates on petrol and diesel are likewise being increased appropriately so as to subsume education cess and secondary and college cess presently levied on them”. This is likewise a kind of carbon tax as described by the finance minister.
- Carbon tax will demotivate the people from using carbon producing fuels and encourage them to opt for alternative energy such as solar, hydro and wind energy.
- The quantity of tax profits will be an additional source of revenue to pocket of the government
- Enterprises will think of investing in the jobs of alternative power generation such as solar, wind etc.,
- On the Other side there are some limitations that might cause due to the imposition of carbon tax as:
Products like coal, crude oil will be priced high due to the boost tax rate which may lead to greater coat of electricity. Eventually this would lead to inflation.
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Despite of its negative outcomes carbon tax will in long term results in reduced co2 emission into the environment. This will improve the health requirements of individuals.