A “green” tax aimed at discouraging high consumption of petroleum products may be in the offing.The tax, perhaps in the form of a cess on consumption, would also check vehicular pollution to some extent and also help in controlling the high oil subsidy burden.

This is in view of a fact that there are no measures in place to discourage and reduce the use of polluting fuels.With no sign of moderation in demand for petroleum products, government officials feel a “green” tax should be levied on automobiles, on the lines of similar taxes in the United Kingdom. Some tax experts also agree with this view. However, given the ramifications of such a move and a possible consumer backlash in the run-up to next year’s general election, the government is unlikely to introduce the tax soon.

People feel that the tax shall be at buying of vehicles which consume uneconomical quantities of fuel e.g. SUVs, luxury sedans, etc.rather than on petroileum products. Purchase of such vehicles should be discouraged by higher tax. Similarly, for electronic products like Fridge, TV, ACs etc. which are low on enery effeciency there should be a green tax.