Some people believe that the most effective way to reduce industrial pollution is to tax the companies which causes them. Others think that there are better ways to do so.
Discuss both views and give your opinion.
Industries provide employment but they also cause a great deal of pollution. Therefore, some people argue that the government should impose higher taxes on industries that cause more pollution. I do not quite agree with this view.
Imposing higher taxes on polluting industries certainly seems like a good idea; however, if this measure is implemented, it will create more problems down the lane. To start with, companies may assume that they have a right to pollute as long as they are ready to pay the tax. Consequently, they will have no motivation to invest in greener technologies. Needless to say, pollution levels will get considerably worse within a few years.
A better solution is to encourage companies to reduce the pollution they cause. The government can offer them incentives to invest in greener technologies. For example, the government should consider offering tax rebates to companies that reduce their pollution levels. This will encourage more and more companies to adopt eco-friendly technologies. The government must also make it mandatory for all businesses to comply with emission standards. It must ensure that industries have set up plants to treat their waste before allowing them to start their operations. The laws already exist in almost all countries but the problem is that they are rarely implemented. This is particularly true in the developing countries where corrupt officials collude with entrepreneurs and issue commencement certificates without checking whether adequate waste disposal systems are in place. Moving hazardous industries to uninhabited places may also help.
To conclude, imposing higher tax on companies that cause more pollution is unlikely to solve the problem. Worse, this measure may exacerbate the situation. A better solution is to offer tax sops to companies that reduce their pollution levels.
Some people think that imposing more tax on companies which contribute to the increase in the pollution will force them to reduce their negative footprints on the environment. Other people believe that there are more viable methods to encourage companies to decrease their pollution. In my opinion, there are many possible ways to motivate firms to reduce their negative / damaging impact on the environment instead of applying more taxes.
Admittedly, imposing additional taxes on companies that contribute to the industrial pollution might force them to reduce carbon emission or waste produced by their operations. They might consider ways to reduce their pollution; nevertheless, this will be limited to meeting certain standards stipulated / imposed by the authorities.
On the other hand, people usually act more positively towards incentives and rewards. In other words, if governments grant more incentives to companies that reduce pollution, then these companies will strive to take serious steps to decrease their negative impact and gain rewards .Authorities can motivate companies by many ways. First, certain tax reduction scheme can be granted to firms that decrease their pollution to below the industrial standard. For example, the corporate income tax in Turkey is around 35%; however, if a company uses a certain technology to reduce its carbon footprints, then this company will be eligible for tax reduction. Second, the government should consider granting loans at a discounted rate to companies that reduce toxins produced by their operations. This approach has proven its success in many counties like Japan and Taiwan. Another motivation for companies to reduce their pollution is to encourage them to benefit from their waste. For instance, in Turkey, firms that invest in technology to convert waste to energy are compensated by the authority as all the electricity produced from waste will be bought by the government at a high price.
In conclusion, I believe penalties might force companies to meet the minimum pollution standard; however, granting incentives and rewards schemes will encourage companies to be more innovative and reduce their industrial pollution to limits less than the set standards.