Direct Tax Incentives and Plastic Waste-to-Fuel Businesses

Shah, Rajiv V (2012) Direct Tax Incentives and Plastic Waste-to-Fuel Businesses. TAPMI, Manipal.

TWP95_1306_Direct Tax incentives_Rajivshah.pdf

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About 9% of municipal solid waste in India consists of plastic waste and this waste is land filled, recycled or incinerated, thus releasing a large amount of pollution. The few measures to handle this waste include efforts by entrepreneurs to convert the plastic waste into more usable products such as fuels and road construction material. Environmental economics has been largely focused on the Pigouvian concept of taxing the polluter and trying to reduce negative externalities. These taxes are essentially in the form of indirect taxes levied on the polluting good at the time of production or sale. To complement the Pigovian tax regimes, there is scope for improving the environmental quality by using other tools such as regulation, incentives for those engaged in reducing negative environmental externalities or in creating positive environmental externalities, using market forces to reduce pollution, etc., albeit in appropriate measures. This study includes the interview of an entrepreneur engaged in converting plastic waste into fuels in India to see if there exists scope for introduction of a direct tax support policy through the Indian Income Tax Act. The key contribution of this paper is the suggestion of four possible direct tax incentives (DTI) in the Indian context to encourage such businesses.

Item Type: TAPMI Working Papers
Uncontrolled Keywords: Environmental taxation, plastic waste management, direct Tax, positive externalities, Waste-to-fuel
Subjects: Finance
Divisions: Finance and Strategy
Depositing User: Ms. Vanitha K
Date Deposited: 14 Nov 2018 09:54
Last Modified: 10 Jun 2020 06:59

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