Goa slaps green cess on polluting businesses

The Goa government Tuesday imposed a green cess on all polluting products to net additional revenue.

Polluters who fail to pay the cess could be fined up to Rs.1 lakh, the new law advocates.

By introducing the Goa Cess on Products and Substances Causing Pollution (Green Cess) Act, the state government has also opened the way to the Environment and Energy Audit Bureau (EAEB) to identify sensitive areas of energy and environment conservation.

The act, introduced in the assembly in April this year, imposes a tax "not exceeding two per cent" on all products which leave behind a carbon footprint due to "handling, consumption, utilisation, transportation, combustion or movement causing pollution of lithosphere, atmosphere, biosphere, hydrosphere and other environmental resources".

The cess will also be imposed on all products which "cause emission of carbon dioxide and other greenhouse gases or discharge of other types of effluents, including asphalts, lubricants, naptha, waxes and other hydrocarbon compounds".

The legislation could directly impact the handling of coal at the Mormugao Port Trust (MPT), whose coal-handling business is currently affected by public protests and stringent action by the state pollution control authority.

The new law also brings in its ambit other polluting industries like mining, transportation and iron ore processing.

Massive pollution, emission and discharge of effluents were leaving carbon footprints on Goa's environment and "measures have to be taken to identify sensitive areas of energy and environment conservation and take such appropriate measures and solution for reducing carbon footprint," the act says.

The EAEB will also assist the government to derive benefits under carbon credit trading and related matters in Goa.