Tobin Tax:
- Proposed by James Tobin, Tobin Tax was proposed to be imposed on all foreign exchange transactions.
- Tobin Tax is imposed when foreign capital enters a country and leaves the country.
- The aim of Tobin Tax is to check speculative flows of foreign capital.
- Many times economists have demanded for imposition of Tobin tax like for climate change .
- Securities transaction tax in India is also an example of Tobin tax as it is also used to check speculation in financial markets.
Pigouvian Tax:
- Pigou in 1920 drew attention to the negative externalities of the economic activities .eg steel production results in emitting foul smoke leading to social cost to the society.
- Private producers would produce steel up to the point where the private marginal cost is equated to the private marginal benefit.
- Pigou suggested to take its social cost into account in the form of Pigouvian Tax .
- It is imposed on bodies that have a negative externality affecting the other persons
- Example of Pigouvian tax are Coal Cess, Extra taxes on Cigarette etc
Pink Tax:
- Pink Tax is a discriminatory practice that acts as a surcharge upon products meant for female similar to their male counterpart eg Microsoft pink mobile mouse is priced 39 % higher than the identical model in blue.
- Women has to bear extra cost in transportation.
- Health premium for women is high given the health complications.
- Women have to divert portion of their income for day to day necessities .
- Lack of access to education make them more vulnerable to the advertisements marketing strategies etc.
Border Adjustment Tax (BAT) :
- Border Adjustment Tax (BAT) is an additional duty that is imposed on imported goods in addition to the customs duty.
- Border Adjustment Tax (BAT) seeks to promote “equal conditions of competition” for foreign and domestic companies supplying products or services within a taxing jurisdiction.
- Border Adjustment Tax (BAT) is imposed in order to attain a certain objective like EU imposed BAT to achieve Green commitments and this taxation is being criticized by India .
