Assam mulls 'green cess' on polluting industries, to cut VAT on PNG

Guwahati, Jul 10 (PTI) The Assam government on Friday proposed a 'green cess' on polluting sectors, the proceeds from which will be used for afforestation, and slashed VAT on piped natural gas by around 10 percentage points to promote use of clean energy. Presenting the state budget for 2026-27, Assam Finance Minister Jayanta Malla Baruah also announced a three per cent tax subvention for purchasing electric vehicles this year. "Speaker Sir, guided by the principle that those who contribute to environmental degradation should also contribute towards its mitigation, our government will introduce a ‘green cess’ on identified polluting activities and assets," he told the assembly. Baruah proposed to levy a 'green cess' on stone crushers, coke-based industries, brick kilns, transfer of second-hand vehicles, commercial extraction of groundwater, and other environmentally sensitive industries and activities as may be notified by the government. The budget, however, did not mention how much tax will be levied as 'green cess'. "The proceeds from this cess will be utilised for afforestation, pollution control, biodiversity conservation, climate adaptation, green energy, water resource management and other environmentally sustainable infrastructure," he said. Baruah also said that the government is committed to expand clean and affordable energy across Assam, and piped natural gas networks are being developed in key areas, including Guwahati, Dibrugarh, Jorhat, Tezpur, Darrang, Baksa, Kokrajhar, Nagaon and the Barak Valley. "To reduce household energy costs, promote cleaner fuel and support city gas expansion, I propose to reduce VAT on piped natural gas from 14.5 per cent to 5 per cent," he said. Over 13,500 domestic piped gas connections have already been provided, along with 46 CNG stations across the state, the budget mentioned. "To further promote electric mobility, I announce Motor Vehicle Tax subvention of 3 per cent for citizens purchasing electric vehicles during the year," Baruah said. Besides, to encourage clean and sustainable energy, the government proposed to extend the exemption from Electricity Duty on captive consumption of electricity generated from renewable energy sources for a further period of three years from April 1 to March 31, 2029, he said. "Our government is committed to promote compressed bio-gas (CBG) as a clean and sustainable source of energy. Oil India Ltd has planned five CBG plants at Guwahati, Tinsukia, Sivasagar, Jorhat and Silchar. The Tinsukia plant is already under implementation with around 40 per cent physical progress," the minister said. Further, a new CBG project is being developed through a partnership between Suzuki R&D Centre India, NDDB and North East Dairy and Foods Ltd at Kalgachia in Barpeta, he said. "To attract more investment in this sector, our government is also finalising a dedicated CBG Policy for Assam. These initiatives will help expand clean energy production and position Assam as a major hub for CBG," Baruah said in his budget speech. PTI TR RBT