Environmental Taxes are imposed on particular activities or products that are considered to be especially damaging to the environment, with the goal of changing economic behavior and reducing pollution.
Ecotax and Green Tax are used almost interchangeably with environmental tax. A carbon tax is an important example of an environmental tax. The carbon tax is imposed on the amount of carbon-based gases any company releases in the biosphere.
Companies and factories are subject to these taxes so that they act responsibly and think twice before starting or continuing a product line the production of which directly contributes to environmental pollution by releasing greenhouse gas into the air.
There are four major sets of taxes that fall under the environmental category and they are -
- Energy tax (on electricity, fuel etc. energy used)
- Transport tax (on vehicle ownership, road tolls etc.)
- Pollution tax (on pollutants emitted directly)
- Resources tax (Natural resources being used)
Energy consumption, driving a vehicle for transportation, direct pollution and using up natural resources - all of them take a big toll on the environment and that’s why these taxes are imposed to discourage the pull towards these environmentally harmful practices.
Use of the Term in Sentences:
- Environmental taxes are set to put a price on actions and practices that are harmful to nature.
- Treating environmental taxes like any other taxes that you must pay is stopping them from achieving the goal they were meant for.
- Promoting the reason behind paying these environmental taxes and how people can switch to more financially rewarding alternatives would be a more goal-oriented behavior that puts the environment’s wellbeing ahead of anything else.