The total tax revenue related to air pollution in India stood at 32.56 billion USD in 2023. From 2013 to 2023, air pollution-related tax revenue showed a substantial upward trend. The period from 2016 to 2023 highlighted a significant rise with notable year-on-year growth, especially in 2016 with a peak increase of 53.86%. However, this growth has gradually plateaued, with more modest increases in recent years, marked by a 3.45% increase from 2022 to 2023. Over the last two years, the average annual growth rate (CAGR) was 3.72%, while the five-year CAGR leading up to 2023 was approximately 3.99%.
Looking ahead, from 2024 onwards, the forecast indicates a continual growth trend but at a slightly decelerated pace. The five-year CAGR forecasted up to 2028 stands at 2.3%, suggesting a total growth rate of around 12.04% during that period. This indicates a more stable and mature phase of revenue collection, reflective of policy changes, stabilization of air pollution issues, and possibly more efficient tax collection mechanisms.
Future trends to watch for include shifts in environmental regulations, technological advancements in pollution control, and the implementation of green policies. Additionally, economic factors and public health initiatives will also play crucial roles in shaping future revenue trends from air pollution-related taxes in India.
