Offer incentives for promoting green products in the financial budget: Indian industry bodies
New Delhi/UNI: The country's top industry bodies have called for offering tax incentives and favourable policies to promote green products in India's upcoming union budget.
In its budget recommendations to the Finance Ministry, Federation of Indian Chambers of Commerce & Industry (FICCI) has proposed to extend concessional tax rate of 15 percent to companies that invest in green technologies on or after a specified date.
FICCI also suggested allowing full deduction towards investment/purchase of green technology assets.
"This will encourage replacement of obsolete technology with green technology," the industry body said, noting that promotion of green technology is critical to India’s commitment towards a net zero emissions target.
Confederation of Indian Industry (CII) has urged the government to come up with a green procurement policy, which would encourage buying of materials that have the least impact on environment and public health.
CII's recommendations include the commercialisation of new technologies for the transition to low carbon/zero carbon pathways.
PHD Chamber of Commerce and Industry, a Rajasthan trade body, said the government must consider the provision of a differentiated and preferential set of incentives to companies that demonstrate leadership in sustainability performance.
"Companies with high “Trustmark” ratings should be provided with incentives like priority fast track clearances, purchase preferences, lower levies of central excise duty for manufacture of “green”, eco-friendly products, and weighted deduction for the expenditure under the Income Tax Law, even if they have opted for concessional tax regime under Section 115BAA or 115BAB of the Act," it said.
The industry body said the Government can support the development of a Responsible Business “Trustmark” Rating System which could be used for conveying a company’s environmental and social performance to the end-consumer.