Fund for Swachh: CMs' panel mulls cess on phone, fuel
New DelhiHyderabad
TIMES NEWS NETWORK
Waste-Energy Projects May Get Tax Breaks
A panel of chief ministers is seeking additional cess on phone and fuel bills to fund the Centre's Swachh Bharat programme -a move that may increase your tax burden. This is in addition to a radical suggestion to bar people without toilets at home from contesting local body elections.
The Niti Aayog subgroup, with Andhra Pradesh chief minister N Chandrababu Naidu as convener, is also of the view that minerals such as coal and iron ore should pay for cleaner India.In the last budget, finance minister Arun Jaitley had announced a cess of up to 2% on all or some services. The finance ministry is, however, yet to notify the cess.
The CMs' panel, which is finalising its report, is also expected to recommend viability gap funding, tax exemptions and separate tariff for waste-to-energy and compost projects. The government has to levy cess on telecom services, petrol, diesel, iron ore and mineral wealth like coal to pool funds for achieving 'Swachh Bharat' in the next five years, Naidu told reporters.
The Centre is expected to mobilize about ` 12,500 crore a year if it imposes even 1% cess on the proposed services and products. Sources said the committee has indicated that 2% increase will provide sufficient funds to implement the national movement.
The government already levies several cess and surcharges -ranging from those to fund education and healthcare to those on petrol and diesel for highway construction which are over and above the taxes that individuals and companies pay . This year, the government has budgeted to collect nearly Rs 1.20 lakh cro re through cess and surcharges, which is over 8% of the budgeted tax collections of ` 14.50 lakh crore. In the past, states have frowned upon levy of cess and surcharges as they are not part of the divisible pool that is shared by the Centre.
The CM's panel has suggested ` 15,000 aid for constructing toilets and provided detailed recommendations for community toilets. Naidu said the panel has recommended that the share of the Centre should be 75% and that of the states 25%. In case of weaker states, the Centre should bear 90% of the cost, while there should be an incentive for the better performing ones, he added.
Naidu said the sub-group has suggested ways on how to go about solid and liquid waste management. We have recommended that Centre should use PPP for promoting solid and liquid waste manage ment projects and provide viability gap funding, particularly for waste-to-energy projects, he said, adding that the panel has also suggested tax exemptions and other regulatory support for waste management projects.
He has also hinted that the regulatory agencies will come up with different tariff for waste management projects.
According to Naidu, the group has also recommended detailed suggestions on dealing with debris and construction and medical waste.
Another major recommendation was not to allow people without toilets in their houses to contest local and civic body elections. The committee observed that this will go a long way in achieving clean India. All contestants, even for a village ward, should have toilets in their houses. There are about 25 lakh villages in the country .
