Assam Targets Polluters With New Green Levy and Gas Tax Cuts

Guwahati: Assam Finance Minister Jayanta Malla Baruah laid out a bold fiscal plan on July 10. The government will slap a green cess on heavy polluters. This tax hits stone crushers, brick kilns, and anyone draining groundwater. The state aims to make the dirtiest industries pay for the mess they leave behind. Baruah justified the move by stating that "those who contribute to environmental degradation should also contribute towards its mitigation."

The cash collected goes to trees, water, and green energy. Officials haven't set the exact rates yet. Meanwhile, the state is making a play for cleaner air in homes and on the roads. VAT on piped natural gas drops from 14.5 percent to just 5 percent. The goal is to speed up gas network growth in cities like Guwahati, Jorhat, and Silchar. Assam already hosts over 13,500 domestic gas connections.

Electric vehicle buyers get a break too. The budget grants a 3 percent tax subvention for all new electric vehicle purchases this year. Businesses generating their own renewable power keep their electricity duty exemption through 2029. Oil India Ltd continues building five compressed bio-gas plants. The state is drafting a new policy to turn Assam into a regional hub for bio-gas production.