Multiple Choice Questions on Cess on coal at Rs 100 per ton is a type of ........ for UPSC EPFO Exam Preparation

Budgeting and Fiscal policy

Indian Economy

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Indian Economy - Understanding the basics of Indian economic system

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    Cess on coal at Rs 100 per ton is a type of

    This questions was previously asked in
    EPFO AO EO 2017

    carbon tax

    Correct Answer

    carbon subsidy

    Incorrect Answer

    carbon incentive for technology

    Incorrect Answer

    carbon incentive for selling carbon permit

    Incorrect Answer
    Explanation:

    - Option 1: Carbon tax - Correct, a cess on coal at Rs 100 per ton is a form of carbon tax. It is levied to discourage the use of coal by making it more expensive due to its carbon emissions.

    - Option 2: Carbon subsidy - This term refers to financial support to reduce emissions, not applicable here.

    - Option 3: Carbon incentive for technology - This would involve rewards or support for technological advancements, not a tax.

    - Option 4: Carbon incentive for selling carbon permit - Related to trading systems, not a tax imposed per ton of coal.

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