Are You Looking to Make a Career in Finance

Carbon tax

What is Carbon tax:

The carbon tax is a tax levied on greenhouse gas emissions. This tax will make carbon-based fuels expensive and hence discourages their use. That results in reduced carbon emissions.

Points to speak:

Carbon tax encourages companies to shift to eco-friendly alternatives and to reduce the usage of carbon-based fuels. This will eventually help in slowing down climate change.

Initially, the carbon tax was implemented in the 1990s in some countries including Norway, Denmark, Germany. At present, approximately 40 countries have imposed a carbon tax.

While some countries could reduce carbon emissions through a carbon tax, some could not. For example, Denmark could reduce emissions, while Norway couldn’t. So, the carbon tax has mixed results.

India does not have a carbon tax, but it imposes coal cess as an indirect tax to discourage coal usage.

As some countries have a carbon tax, some people started to shift their manufacturing base to other countries where there is no carbon tax and strict environmental regulations. And they export the output goods to many countries, including the countries, where there is a carbon tax. This is also resulting in unfair competition between imported goods and goods manufactured by domestic manufacturers, who pay the carbon tax.

So, the EU and the US are working on imposing a carbon border tax to levy a carbon tax on imports that were manufactured by emitting greenhouse gases. This can result in reduced emissions and also a level playing field between imports and domestic manufactured goods.

India and other countries opposed carbon border tax because it is against World Trade Organization rules, and is discriminatory towards the developing countries. Moreover, developed countries are responsible for 79% of historical carbon emissions, and developing countries are yet to peak their emissions to raise their standard of living.

Conclusion:

Levying carbon tax on businesses and industries is very beneficial for the environment. This will reduce greenhouse gas emissions, and will force companies to use eco-friendly alternatives. Thereby it will help in slowing down climate change.

Your Turn…

What is your opinion on the carbon tax? Express your thoughts through the comment section below.

Startup survival without investors
Theme:
It’s not that easy for a startup to get external funding. And some entrepreneurs choose to build their startups without investors. Whatever the reason may be, several startups are surviving without external funding.
Advantages for startups without external funding:
If someone invests in our company, he/she will have a say in the decisions. We may not be able to implement our new ideas if the investor does not agree with them. In other words, they will become our boss. So, if there is no external funding, we can implement our own decisions. And if we want to modify the product to make it much better, we can do it easily.
There will be no stress from investors to get profits within a target specified by them.
When there is little money, we will use it judiciously. We won’t spend on unnecessary things. We will most probably find cost-effective solutions.
To run the company without investors, it should make short-term profits too. So, that will eventually make the company profitable and will increase its worth.
The time spent on finding the investors, can be spent on making good relationships with customers and also on taking their feedback and improving the product according to their needs.
When there is external funding, We have to manage things on a large scale without much experience. But without external investment, even though the company’s growth will be slow, we will learn to handle things step by step while scaling up the business. We will most probably handle the finances much better.
How can a startup survive without investors:
Investing our own money to build the startup, and reinvesting the profits we get is called bootstrapping the company. Many startups were built this way, and when they become successful, they attract external funding automatically. Apple, GitHub & Facebook are good examples of this. They were bootstrapped companies in the early stages.
We can offer the product for pre-booking and the money collected can be used as an investment. But for this, we need put efforts to gain the trust of customers.
Crowdfunding is also a good way to gather investment for the startup. Some founders take the money as loans, and some others will give rewards or shares for the money people invested.
Offering shares of the company to employees as a part of the salary can reduce the burden on founders and also motivates employees to make the startup successful.
The subscription model can fetch regular income for the company to reinvest in making the product better and to build new features. OTT platforms are a good example of this.
Reducing unnecessary expenditure, and using the money wisely is very important to make the startup survive.
Conclusion:
Startups without investors have many advantages. Even though it takes much longer to scale up the company with no external funding, founders can build the startup in the way they want. They can make their idea into reality without compromise. However, external investment is beneficial while scaling up a company. When we build the startup by creating a sustainable business model, it will eventually attract investors.
What are your thoughts on this topic? Express your point of view through the comment section below.

Are you want to be the most sought-after Financial Profession?
These are the few courses. Interested Candidate May Comment Interested.

Hi. These are the few courses. Interested Candidate May Comment Interested.

Are you want to be the most sought-after Financial Profession?