Some people believe that the most effective way to tackle industrial pollution is to tax factories generating it. Others say there are alternatives to handle it.Discuss both sides and provide your opinion.
In today’s industrialized world where environmental pollution caused by industries have reached unprecedented levels. To encounter this, certain section of the society recommends imposing higher corporate taxes. Whereas, others have contrasting views, of imposing threshold pollution levels irrespective of taxes. In my opinion, imposing additional taxes is a good option. However, for optimum results, a combination of both stricter policies alongside higher taxes must be imposed.
Firstly, tax revenues generated from industries can be better utilized by governments on repairing the damages made to the environment. Furthermore, money from taxes can be utilized in research activities, with an aim of reducing pollution. Secondly, as a result of mandating higher taxation policies, companies shall strive to improvise the production processes, with an aim of reducing the pollution. Consequently, pollution would be drastically reduced at first place. For instance, Coal India which is India’s largest producer of coal, has successfully re-engineered the coal production process, as a result of strict financial repercussions from government.
On the other hand, simple step of imposing higher taxes is not an optimum solution, as in current competitive world, companies can exploit this policy by multiplying the production without considering the environmental damages, as long as they are capable of paying increased tax rates. This trend would have devastating results in longer run. For instance, plastic products are known to be biggest destructor of ecosystem, at the same time it highly lucrative business. Therefore, allowing plastic producers to produce plastic without restrictions can lead to serious environmental destructions.
To conclude, even though collecting higher taxes on environmental grounds is a good option. However, a maximum threshold of allowed pollution must be imposed on industries. More importantly, such a fine balance between tax and threshold would allow governments to come up with solutions to fight back the calculated the expected threshold level of pollution.
Pollution is one of the most pressing global issues nowadays and government of different countries are trying to battle this heinous issue from different perspectives and imposing tax to companies who are responsible for creating pollution is one of the ways. Definitely imposing high tax to industries that are responsible for polluting environment is a good way to tackle the pollution but in my opinion this is not the best way to reduce pollution.
It is true that industries that are in manufacturing sector are polluting the air, water and sound significantly. The amounts of CO2 emission by such industries are higher than many other sectors. So to control the amount of pollution they are creating, government can impose a really high tax rate. This would in one hand discourage the expansion and growth of such industries due to the high tax rate and on the other hand would increase the fund the government has for fighting the environmental pollution. Almost every government has projects like plantation, green environment and the high tax would ensure bigger amounts in these funds.
Again, high tax rate in industry level would not be the best way to reduce the environment pollution. Awareness among people, taking more initiatives like creating a green environment, controlling the amount of private cars run in the streets, controlling unfit vehicles, reducing the unnecessary factories and researching to find out the type of fuels that create less pollution would be other better solutions. Some large industries that are polluting the environment would not reduce the amount of pollution they create even if they are imposed with high tax. Their earnings are in millions of dollars per day. Few thousands for tax are insignificant for them. So in my opinion this is definitely not the best solution to fight pollution.
In conclusion, high tax imposing to industries is a good way to increase the government funds for battling the pollution but this is not the best way to control the environmental pollution. Individual person’s awareness, participation and government’s policy to reduce the private car ownership, plantation and research for innovation methods would be better solution.