Copyright © Laveesh Bhandari, Rajat Verma, and Dhruva Teja Nandipati

Table of Contents

• President and Senior Fellow Centre for Social and Economic Progress New Delhi India 3
• Associate Fellow Centre for Social and Economic Progress New Delhi India 3
• Former Research Analyst Centre for Social and Economic Progress New Delhi India 3
• Table of Contents 4
• List of Tables 4
• List of Figures 4
• List of Boxes 4
• List of Abbreviations 5
• Abstract 6
• 1. Introduction 7
• 2. Falling Fossil Fuel Revenues 8
• 3. Tax Revenues in India 9
• 4. Taxation Alternatives 12
• 4.1 A New Mechanism for Emission or Carbon Taxes 15
• Revenue Generation 15
• Continuity and Constitutionality 16
• Sharing Flexibility and Autonomy 17
• 4.2 GST and Carbon Taxes 18
• 5. Way Forward 19
• References 21
• Appendices 24
• Appendix 1 IEA and BP Estimates of Energy Forecast for India 24
• Appendix 2 List of Taxes on Fossil Fuels in India 24
• Appendix 3 Fossil Fuel Revenue for States 25
• Appendix 4 Projection of Tax Revenues 26
• Appendix 5 Direct Taxes 26
• A. Revenues Generation - Personal Income Tax 26
• B. Revenue Generation - Corporate Income Tax CIT 27
• C. Continuity and Constitutionality 28
• D. Sharing Flexibility and Autonomy 28
• Box 1 Finance Commission and Energy Transition 29
• Appendix 6 Indirect Taxes 29
• A. Revenue Generation GST 29
• B. Revenue Generation Electricity Tax 30
• Box 2 Transport-Related Taxes 31
• C. Revenue Generation Distance-based Tax 31
• Box 3 The Case of FASTag in India 32
• D. Continuity and Constitutionality 32
• E. Sharing Flexibility and Autonomy 33
• Appendix 7 Finance Commission 34
• Appendix 8 Goods and Services Tax GST 35
• A. Sharing of Revenue 35
• B. States View 35
• C. Fiscal Alternative to Restore States Autonomy 35
• About the authors 37
• Other publications 38