Production in India may implicitly face tariffs to the tune of 10.5 per cent value-added tax (VAT) if the European Union’s (EU’s) Carbon Border Adjustment Mechanism (CBAM) comes into effect, according to a study by the Asian Development Bank (ADB) published on Monday.
CBAM is a carbon tariff on carbon-intensive products like steel, cement and some electricity imported to the EU. Legislated as part of the European Green Deal, it comes into effect in 2026, with reporting starting in 2023.
Source: www.business-standard.com
