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Reforming Indirect Taxes in India: Role of Environmental Taxes

Author

Listed:
  • D K Srivastava

    (Madras School of Economics)

  • C Bhujanga Rao

    (Madras School of Economics)

Abstract

Extensive reforms of India’s indirect taxes at the central and the state levels has prepared the necessary ground for the implementation of a comprehensive goods and services tax (GST). The Empowered Committee of the State Finance Ministers in their First Discussion Paper and the Thirteenth Finance Commission in their recently submitted report have suggested GST models which are quite different in many respects. This paper identifies these differences and argues that within the regime of taxation of goods and services in India environmental tax reform should also be incorporated to make the tax regime play a significant role in managing environment. The environment tax reforms will yield both a fiscal double dividend and an economic double dividend making the Indian economy pursue a path of sustainable development.

Suggested Citation

  • D K Srivastava & C Bhujanga Rao, 2010. "Reforming Indirect Taxes in India: Role of Environmental Taxes," Working Papers 2010-050, Madras School of Economics,Chennai,India.
    • Handle: RePEc:mad:wpaper:2010-050
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    References listed on IDEAS

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    Cited by:

    1. Das, Rituparna & Das, Mononita, 2014. "Environmental Economics, Law and Policy: Brazil vis-a-vis India (Part I: Theoretical Modelling)," MPRA Paper 63339, University Library of Munich, Germany.

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    More about this item

    Keywords

    Taxes; environment;

    JEL classification:

    • H6 - Public Economics - - National Budget, Deficit, and Debt
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies

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