Which of the following is an example of quot Pigovian Tax quot ........

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Which of the following is an example of "Pigovian Tax"?

Tax on Diesel.

Education Cess.

VAT

Compulsory contribution for disaster relief.

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Explanation:

Pigovian tax is a special tax that is often levied on companies that pollute the environment or create excess social costs, called negative externalities, through business practices. In a true market economy, a Pigovian tax is the most efficient and effective way to correct negative externalities. Tax on diesel, tax on tobacco products and alcohol are examples of Pigouvian Tax.