Modi government eyes on Carbon Credit business for revenue
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- Current News
- Wednesday, 20 February 2013 19:49
- Published on Wednesday, 20 February 2013 19:49
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Gujarat Global News Network, Ahmedabad
In his first budget after elections, Chief Minister Narendra Modi introduced five percent VAT on carbon credit business money. However, the budget proposal moved by Finance Minister Nitin Patel tries to give impression that there is relief of ten percent.
This became clear when Principal Secretary Finance Hasmukh Adhia explained the issue of VAT on Carbon Credit income to the media after the presentation of the budget in Gujarat Assembly. He said that Carbon Credit is not mentioned in VAT Act. As a result, income from any deal of Carbon Credit is to be taxed at the rate of 15 percent.
He said that to encourage carbon credit, the government has decided to include the carbon credit in entry 41 of Schedule of the VAT Act. To a question, he said that government had no specific information about the carbon credit business, but last year multiple commodity exchange had business of Rs 1380 crore with companies of Gujarat.
He pleaded ignorance when asked the companies which have earned carbon credit and doing business at the exchange. He also pleaded ignorance about the estimate of income Gujarat government expects from the emerging business of carbon credit.
In a major move to earn revenue, Gujarat government has decided to increase electricity duty on the power generated by private companies, known as captive power generation. Through increased electricity duty on captive power generation, Gujarat government expects to earn Rs 255 crore out of total fresh revenue of Rs 289 crore.
He said that this is to reduce gap in duty on power generated by these private companies and others.
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