2500 industries to pay green tax for polluting environment

Some 2500 industries may have to pay the newly introduced 'green tax' from the current fiscal year as a penalty for polluting environment.
The Department of Environment (DoE), under the environment ministry, has sent a list of the industries including their names to the National Board of Revenue (NBR) recently.
The industries include tanneries, washing and dyeing plants of garments, brick fields, auto-rice mills, chemical factories, ship breaking etc. the DoE selected the industries division-wise.
In the budget for FY 2014-15, the government imposed one per cent surcharge on the prices of the goods produced by polluting factories.
The DoE prepared the list following recommendation of the VAT department of the NBR.
Officials said the DoE listed the industries that had faced penal action so far for violating the Environment Conservation Act-1995. The industries have polluted environment by not installing Effluent Treatment Plant (ETP) and other ways.
The VAT wing will collect the 1.0 per cent surcharge, non-tax revenue, from the industries after issuance of a gazette notification, said a senior VAT official.
"The industries are polluting environment as per DoE data. The NBR would issue a gazette notification with the names of the industries," he said.
The names of the industries would be updated after a certain period of time by excluding those which become complaint including new non-complaints ones.
Environment ministry secretary Shafiqur Rahman Patwary hailed the 'green tax' but suggested cautious steps to avoid harassment of the industry in respect of imposition of the measure.
"Selection of the polluting industries would need field inspection to ensure justice," he said.
Mr Patwary, however, said the new measure would make the polluting industries cautious over complying with the existing law.
The green taxes will be imposed under 'Environment Protection Surcharge Collection Rules 2014' that has been issued by the VAT wing earlier.
The amount of surcharge would be spent on protection of environment.
As per rules, the NBR would collect the surcharge at 1.0 per cent on prices of all types of products of the errant industries. The surcharges would be imposed on the revenue board-approved prices of the manufactured products. 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 challan or electronic transfer in a specific code. 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.