Finance Minister has cleared one more thing before the GST comes into existence that the tax rate would be proportionately higher for the products and items which are degradable for the environment and subsequently causing harm to it.
The finance minister Arun Jaitley mentioned it in a statement, “The indirect tax regime that we are planning, the rate of taxation on such products which are going to be environmentally unfriendly would be distinct from the normal rate of taxation. This is one of the proposals being discussed.”
“The government is in the process of finalizing rates for the Goods and Services Tax. The country has taxed coal and petroleum products in the past as well, resources have to be mobilized from all sources for climate financing so that sustainable development goals can be achieved in a much more concrete manner,” he added.
The climate issue has been taking a toll for many years, and the minister said that large commitment from the developed countries to provide funding for climate change financing is not sufficient to meet the sustainable development goals and that the multilateral agencies also need to chip in.
Recommended Article: GST Impacton Real Estate Sector
The finance minister told that previous year there was an issue which New Delhi and Beijing raised totaling USD 100 billion of climate improvement funding, while the issue was stuck at the trust and not only at money.
He money was even transferred and was utilized in several healthcare and environmental protection campaigns. Reserve Bank governor also raised an issue about the climate financing which has to ultimately the demand of environmental issue.
Reserve Bank Governor Urjit Patel said that “The USD 100-billion number has been talked about for the past 10 years and there is very little pressure from the domestic constituencies in the advanced economy countries, including the media. This is part of a grand bargain and if you keep on undermining this, I think people will walk away from the table at some point.”
It means that the Govt will less % GST for the environmental friendly products units, such as Flyash bricks/blocks.