“In response to growing concern over global warming, Finance Minister P Chidambaram is contemplating to reduce duty level on eco-friendly  machineries having application in all sorts of industrial activities ranging from infrastructural development projects to manufacturing process,” sources said.

Duty concession

It is learnt that various chambers of trade and industry have been asked by Finance Ministry to give list of such specific machineries, which directly contribute towards low carbon emission, sources added.

According to sources, those machineries, which are specifically used in reducing carbon emission, will qualify for duty concession.  “Large number of specific auto components contributing to pollution control as well as machineries used in emission control exercise in power sector may get duty concessions,” they said. “The idea is to promote low carbon economy through pro-active actions like encouraging green technologies through tax measures.”  As per an estimate the country is losing 10 per cent of its Gross Domestic Product (GDP) on account of air pollution and degradation of natural resource.

In the wake of growing realisation within the government to promote pollution control finance ministry has been flooded with memoranda from various organisations seeking tax concessions on eco-friendly enterprises.
“With the government contemplating to come out with a Climate Change Policy to address issues on global warming the Finance Ministry is giving a serious thought to the proposed duty concession on eco-friendly machineries”, sources said.

An Inter Ministerial Task Force on Integrated Plant Nutrient Management constituted has recommended exemption in Customs and Excise duties on machinery used in compositing of garbage.