Need revenue to fund R&D, meet challenges: FM on taxes

Vijay C Roy

Tribune News Service

Chandigarh, August 13

The country has moved ahead on transition from fossil fuel to renewable energy with own funds, as it can’t afford to wait for money from somewhere else, Union Finance Minister Nirmala Sitharaman said today.

“People often ask me why our taxes are like this? Why can’t we even be lower than this? I wish, I can bring down India’s taxes to nil, but India’s challenges are severe and challenges need to overcome,” the minister while addressing the 11th convocation of the Indian Institute of Science Education and Research in Bhopal.

“The world has promised a lot of money towards transitioning from fossil fuel to renewable energy but that money is yet to come. The promises given in Paris (Paris Agreement) were fulfilled with our own money. We are investing heavily, moving to renewable energy on our own strength as we can’t wait for global funds,” Sithraman said.

She appealed to the scientist community to do more research on the storage of renewable energy. She added that innovations in storage space will help to have greater reliance on renewable energy.

Sitharaman also urged scientists to develop batteries for the storage of the renewable energy as transition from fossil fuel to renewable energy has to be sustainable.

On the occasion, the finance minister justified the present taxation regime, saying that the country needs resources to meet the challenges facing the nation and also to fund research and development. “The government is just not talking. It is putting money in R&D (research and development), earned out of taxation,” she said.

According to Crisil rating, strong addition of renewable energy capacities will pull down the share of coal-based (thermal) plants in power generation to 67 per cent by next fiscal.