25/05/2021 - Environment

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KEY POINTS

·        The Indian government announced a pandemic-related stimulus package in FY 2020-21 though there was large decline in tax revenue.

·        The Economic Survey of India 2019-20 has outlined the fact that an increase in public spending from 1% to 2.5-3% of GDP, as envisaged in the National Health Policy of 2017, can decrease out-of-pocket expenditure from 65% to 30% of overall healthcare expenses.

·        India currently focuses majorly on the command-and-control approach in tackling pollution.

·        The eco tax rate ought to be equal to the marginal social cost arising from the negative externalities associated with the production, consumption or disposal of goods and services.

·        Environmental tax reforms generally involve three complementary activities: (a) eliminating existing subsidies and taxes that have a harmful impact on the environment; (b) restructuring existing taxes in an environmentally supportive manner; and (c) initiating new environmental taxes.

·        In India, eco taxes can target three main areas: one, differential taxation on vehicles in the transport sector purely oriented towards fuel efficiency and GPS-based congestion charges; two, in the energy sector by taxing fuels which feed into energy generation; and three, waste generation and use of natural resources.

·        The implementation of an environmental tax in India will have three broad benefits: fiscal, environmental and poverty reduction. 

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kindly review and give suggestions mam/sir