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ICPPA asks govt to remove Environment Cess on coal

Saturday, March 5, 2016, 13:35
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NEW DELHI: Indian Captive Power Producers Association today said the budgetary proposal to double cess on coal was not a “progressive tax” and should be reviewed. “Union Budget 2016 has doubled the Environment Cess… nation is already paying double the price of coal (than China)… taxes and levies further make the coal price double for nation. Thus Environment Cess is not a progressive tax and warrants a review to achieve a sound and sustainable national policy,” Indian Captive Power Producers Association (ICPPA) said in a release. Renaming the Clean Energy Cess as Clean Environment Cess, the government had proposed to raise the cess on coal, lignite and peat from the current Rs 200 a tonne to Rs 400. ICPPA requested the government “to all-together remove this Environment Cess of Rs 400 metric tonne on coal.” Budget 2016-17 has proposed to rename ‘Clean Energy Cess’ levied on coal, lignite and peat as ‘Clean Environment Cess’ and its incidence has been increased to Rs 400 per tonne, from Rs 200 per tonne. The government had earlier said the proceeds from higher coal cess will be to the tune of Rs 40,000 crore by 2018 which will be used for cleaning up the environment as well as research programmes.

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