Prepare for the EU carbon tax

The government has asked industry to prepare for a "carbon tax" that the European Union (EU) has said it will impose on imports of products with carbon emissions above a prescribed limit, but said efforts would be made to legitimately exempt parts of the industry from the tax. While the EU will introduce a tax on imports from January 1, 2026, New Delhi will work with the Group of 27 countries to make the transition as smooth as possible, a senior official said on Tuesday. "The government sees the carbon tax as a trade issue, not an environmental issue. It has also raised objections to it at the World Trade Organization, but the industry needs to be prepared for the new regime so that exports can continue without hindrance," the official, who did not wish to be identified, said here on Tuesday.(Government of India)

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