Energy efficiency needs to be basis for determining product taxation, said Toyota Kirloskar Motor Vice Chairman Vikram Kirloskar.
"To realise India's goals of energy security and countering climate change, we must lay equal emphasis on enhancing energy efficiency as we do for fossil fuel substitution.
"This will help us address the entire value chain as well as for efforts to reduce, reuse and recycle materials," he said at the 61st SIAM Annual Convention held here.
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Kirloskar called for adopting a merit-based taxation structure that incentivises consumers to choose more energy efficient appliances, gadgets and vehicles which are otherwise more expensive due to higher technology costs.