Interplay between Tax and Sustainability

Overview

Given the increasing importance of ESG reporting across the globe, the interplay of tax and sustainability has also gained significance. Right from carbon levies to green subsidies to tax transparency, the landscape is quite vast. This requires businesses to understand emerging tax transparency policies, make adequate disclosures for stakeholders and navigate their way through the levy of carbon taxes on supply chains. The emergence of new carbon levies and complex computation mechanisms for the same and new tax transparency disclosure requirements across jurisdictions will be witnessed in the coming years.

We at BDO India enable organisations to embrace tax transparency and understand the impact of carbon levies on the supply chain.

Interplay between Tax and Sustainability

Given the Indian government’s increasing impetus on ESG reporting, corporates in India need to focus on disclosure of their tax practices and strategies, including their tax payments, incentives, and structures. In the near future, the Government is also expected to roll out critical tax disclosure policies aimed at promoting increased transparency, and accountability, reducing tax avoidance, evasion, and aggressive tax planning. It is also important for businesses to understand the impact of the carbon levies on their supply chain. Businesses would need to re-evaluate their global supply chains not only to mitigate these carbon levies but also to lower their carbon footprint.