Green taxation changes government revenue and its applicability in Bangladesh

Abstract

An inclusive environmental green tax is a tax levied on all expenses and income related to the environment to protect the environment and reduce the pressure on the general sector of national revenue. Green tax is levied on industry, corporations, and individuals who through carbon emissions, various chemical emissions, and various greenhouse gases emissions into the environment. To expand the revenue sector, it is first necessary to determine how much expenditure and revenue generated. Most of the government revenue is spent on the mitigation of environmental impacts directly or indirectly. Bangladesh is yet to impose a green tax. In the fiscal year 2014-15, a 5% green tax was proposed but it was not implemented. Developed countries, are working for the proper implementation of green tax constantly by imposing the green tax. Bangladesh collects revenue by levying only certain vehicle registration fees, excise duty, and small changes in the industry, forest, agriculture, and transportation sectors. Bangladesh is more spent than revenue in these sectors. The analysis of the results shown that if the green tax can be imposed in Bangladesh, it will play an effective role in increasing the revenue of Bangladesh's Sustainable Development and long-term financial stability.