However, the ministry may introduce the tax in the long term and will study the feasibility of it as one of the ways to support the nation's goal of reducing greenhouse gas emissions by 45% based on the Gross Domestic Product in 2030, as targeted in the 12th Plan.
According to the MoF, a comprehensive research is needed to assess the impact of such a tax on industry and consumers.
The mechanism will be guided by the carbon mitigation policy of the Ministry of Natural Resources, Environment and Climate Change and in line with the National Low Carbon Aspiration 2040 plan as defined under the National Energy Policy, the ministry said in a press release on February 16.
The MoF also revealed that the formulation of the carbon tax will need to be aligned with fuel subsidies so that the objectives of the two policies did not contradict one another.
The government will focus on the need to develop the country in a green, sustainable manner that prioritises , sustainability and environmental protection, it said.
