The Odisha Government has renewed its demand for Green Tax as a precondition for lending support to the Goods and Services Tax (GST) by the Centre. While Chief Minister Naveen Patnaik has earlier written to the Prime Minister in this regard, State Finance Minister Pradip Kumar Amat raised the issue in a recently-concluded Empowered Committee of Finance Ministers. BJD MPs in the lok Sabha are also vociferously pressing for imposition of Green Tax for the State.
Under the GST, the destination principle applies and the mineral producing States where pollution may be localized don’t get any part of the revenue. It is only the consuming State that gets the tax revenue whereas the pollution is suffered by the people of the producing State. Green Tax will help the mineral bearing States compensate pollution problem and ensure pro-environmental programmes.
Taking into account the adverse environmental impact it will sustain, Odisha has proposed for the levy of an additional non-rebatable cess subject to suitable framing of guidelines after consultation in the proposed GST Council.
There should be a new entry in the Seventh Schedule to the Constitution, State list as 54A Other Polluting goods and services to be notified by GST Council, urged BJD MPs. Similarly, the Odisha Government is also demanding tax on tobacco and tobacco products.
In the draft Constitution Amendment Bill, the Central Government’s power to tax on tobacco and tobacco products is retained, whereas the State Governments are not given power to tax on tobacco and tobacco products.
Tobacco and tobacco products besides being good sources of revenue for the States are “sin goods” and its consumption is discouraged. The State Government, thus, has urged that “tobacco and tobacco products” should be included in Entry 54 of the State list so as to enable the States to levy higher rate of tax on it.
Both these demands are raised in various forums and more thrust is being given for Green Tax, which will be used for environment protection of the State, said a senior official.