Question

What is Carbon Levy?

• A. It’s a tax levied on jet and shipping fuel to finance climate change mitigation
• B. It’s a tax levied on carbon fuel
• C. It’s a tax levied on production of fossil fuel and coal
• D. It’s a tax levied on production of coal only

Answer 1

Answer:

B. It’s a tax levied on carbon fuel

Carbon tax is levied on the carbon content of fuels. So, in Carbon Tax, the burning of fossil fuels viz. coal, petroleum products such as gasoline and aviation fuel, and natural gas is taxed in proportion to their carbon content. The result is an increase in the competitiveness of non-carbon technologies compared to the traditional burning of fossil fuels. It directly helps to protect the environment while raising revenues