´Impose higher carbon tax on petrol products & coal´

The economic survey has hinted at higher carbon taxation on petroleum products and coal to gain a footing at the year-end climate change dialogue in Paris. The survey highlighted the need and scope for rationalizing coal and petroleum prices and making them equivalent to international prices. The government in last budget doubled clean cess on coal to Rs 100 per tonne and raised excise duty on petroleum products several times since October last year translating into a carbon tax of nearly $60 per ton of CO2 in the case of petrol and nearly $42 per ton in the case of diesel.