Environmental Excise Tax

An Environmental Excise Tax is a special tax applied to the production or use of products that harm the environment. It is designed to discourage environmentally damaging activities, such as carbon emissions or the use of hazardous materials. When businesses or consumers purchase these products, they pay the tax, which can then fund environmental protection efforts or clean-up initiatives. Essentially, the goal of this tax is to promote eco-friendliness by making harmful practices more costly, encouraging more sustainable choices in the economy.