Carbon Tax

Overview

While Pakistan’s carbon emissions are comparatively low, it is among the most polluted countries in the world in terms of ambient air pollution and water contamination. According to one published estimate of air quality, Pakistan is ranked the second most polluted country in the world after Bangladesh. The country’s main cities rank among those with the worst air quality in the world; Lahore alternates with New Delhi as the top-ranked city globally between November and February each year. Such high levels of pollution impose significant costs to society and the economy.

Taxing pollution in pakistan

Progress

To address the issue of increasing carbon emissions and pollution, SEED has developed a technical brief “Taxing Pollution in Pakistan: Policy Options for a Green Tax and is currently exploring a “green” tax or levy with the federal and provincial governments. Such a levy will assist Pakistan in making progress towards meeting its SDG-related climate change commitments, will generate salience for pollution concerns at the national level, and elevate the public discourse. The proposed policy option would raise up to PKR. 1 Billion per annum leading to a perpetuity value of PKR. 13.4 billion ($83m).