Carbon tax is the tax levied on firms or individuals for the emission of carbon dioxide or other pollutants into the environment by any kind of operations. It is used as an important tool to reduce environmental degradation by industries in the name of development. Sustainable development is an important base for all countries but its working requires certain reforms. In Canada, it was noted that air pollution is decreasing with the growth of the economy. Even with an increasing demand for goods and services, housing, transportation and other pressures on the land, Canada has successfully managed the control of pollutants in the environment. From records, it was found that Canada has introduced pollution or carbon tax. It says every use and misuse of the environment should be paid for. Carbon tax has been found to be a more efficient way of controlling greenhouse gas emissions into the environment. The tax was started in 2019 with $20 per ton. It was set to increase annually with the growing use of fuels and energy. The current pricing is set to be $50 per ton which will rise to $65 per ton from 1st April 2023. Under the Greenhouse Gas Pollution Pricing Act of 2018, there will be a regulatory charge on the use of fossil fuels and a performance based tax on the industries. This is known as the output based pricing system. The taxes levied are in the form of fuel tax, gasoline taxes, coal taxes etc. The idea was taken from their neighboring state, Alberta. But now the discussions are going on in different parts of the world on adopting the idea, mainly the US. It was found that carbon pollution pricing works well in encouraging industries to develop and adopt cleaner technologies and innovations. India has given a concept of green growth in its budget for the year 2023-24. However, India does not have any tax on carbon emission or pollution, besides Environmental Compensation Charge on vehicles. As India is given a corporate tax of 25% for the coming years in her budget, it is said to be more beneficial to build a pollution tax or on the emission of carbon to the environment, which is the real cause of environmental degradation. For India, economic development alone cannot be prioritized. Sustainable development cannot be shortened to its meaning alone as its correct implementation is quintessential for the sustenance of our nation in the long run. References A Tax on Carbon Pollution Can Benefit Business. (2015, December 1). Scientific American. Retrieved March 26, 2023, from https://www.scientificamerican.com/article/a-tax-on-carbon-pollution-can-benefit-business/
How carbon pricing works. (2022, November 22). Canada.ca. Retrieved March 26, 2023, from https://www.canada.ca/en/environment-climate-change/services/climate-change/pricing-pollutio n-how-it-will-work/putting-price-on-carbon-pollution.html TAX RATES. (n.d.). Income Tax Department. Retrieved March 26, 2023, from https://incometaxindia.gov.in/Tutorials/2%20Tax%20Rates.pdf Shrivastav, G. (2022, January 4). Is India ready to have carbon tax? Deccan Herald. Retrieved March 26, 2023, from https://www.deccanherald.com/opinion/panorama/is-india-ready-to-have-carbon-tax-1067679.ht ml