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In India the central and state governments are contemplating moving to a comprehensive Goods and Services Tax (GST) regime. Such a tax reform, while much needed, implies a uniform rate for all goods and services. Such a uniform rate would work against the environment as it does not discriminate polluting inputs and outputs from other goods unless provision is made for non-rebatable taxes or cesses on polluting inputs or outputs. This cannot be done on a large scale and the polluting inputs/outputs have to be carefully identified for the levy of eco-taxes for maximum beneficial impact. It is the appropriate time for casting eco-taxes as an integral part of the GST regime as changes later will be quite difficult. At the same time using revenues raised by the eco-taxes can be earmarked for eco-subsidies making this initiative a two-edged tool for sustained economic growth through effective environmental management.

This project aims at presenting technical papers on the subject and proactively disseminating information among key policy makers, Parliamentarians and stakeholders such as industrial organizations and associations to enhance capacity for implementation


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