GOVERNMENT PANEL SEEKS CARBON TAX REJIG TO DISCOURAGE COAL IMPORTS

An inter-ministerial panel has proposed adjustments to the carbon tax on coal imports in India, aiming to halt imports by 2030. The panel, established by the coal ministry, recommends altering the current flat-rate GST Compensation Cess of Rs 400 per tonne to reflect the heating quality of coal. This adjustment aims to create parity between imported and domestic coal users and discourage imports.

Currently, consumers using domestic coal with high ash content and lower heating value face a higher cess burden per unit of heating compared to those using imported fuel with lower ash content and higher heating value. By linking the cess to the heating quality of coal, the panel seeks to address this disparity and promote the use of domestic coal.

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