Polluting industries to pay green tax

Doulot Akter Mala | Published: July 05, 2014 00:00:00 | Updated: November 30, 2024 06:01:00

Industries polluting environment and generating health hazards will have to pay 1.0 percent surcharge, a new fiscal measure defined as green taxes, from the current fiscal year.
The National Board of Revenue (NBR) has issued two separate rules by explaining details on procedures of tax collection from the industries polluting the environment.
The green taxes, enforced under 'Environment Protection Surcharge Collection Rules 2014' and 'Health Development Surcharge Collection Rules 2014', came into force on July 1st.Â Â
Value-added tax (VAT) authorities will collect the surcharge and the proceeds from the penal tax will be spent on the protection of environment and health- development purposes. Â
As per rules, a list of environment-polluting industries would be prepared to collect the surcharge at 1.0 per cent on prices of all types of products of the errant industries. The board last week held a meeting with the environment ministry to frame an action plan on enforcement of the law and urge the ministry to list out environment-hazardous industries, including those which don't have effluent-treatment plants (ETPs).
Under the other one of the twin-rules, the government slapped as much (1.0 per cent) surcharge on imported and locally produced tobacco products.
The NBR defined the tobacco products as 'tobacco, tobacco leaf or products produced from its essence, chewing tobacco, smoking tobacco, bidi, cigarettes, churut, jarda, gul, khaini, sadapata, cigar, hookah or any mixtures inhaled through pipes.
The surcharges would be imposed on the revenue board-approved prices or tariff value of the produced and supplied products. On imposing the surcharge, the tax authority would consider the price-base under which they are collecting VAT.
The industries will have to pay the surcharge on produced and supplied products through treasury chalan or electronic transfer in a specific code.
The amount of surcharge should be mentioned in the VAT-11 chalan and copies of treasury chalan of surcharge payments be attached at the time of VAT-return submission.
Customs, excise and VAT commissionarates will have to keep monthly collection statements on surcharge as non-tax revenue.
The VAT authorities have been authorised to impose punitive measures and penal taxes in case of non-compliance with the rules by the industries or any person.
Assistant commissioners are empowered to suspend unloading or release of products from the factories in case of failure in payment of the pollution taxes.