Water (Prevention and Control of Pollution) Cess
Water Cess, or to be precise, Water (Prevention and Control of Pollution) Cess refers to a tax levied under the Water (Prevention and Control of Pollution) Cess Act, 1977 on water consumed by persons operating and carrying on certain types of industrial activities. For instance, this cess is levied on the water consumed by some of the most polluting industries like petrochemicals, ferrous, mining, chemical, fertiliser, paper, leather etc.
Every local authority - a municipal corporation or a municipal council or a cantonment board or any other body, entrusted with the duty of supplying the water is also liable to pay the cess.
Rates vary from 2 paisa / kilo litre to 30 paisa/kilo litre as in November 2015.
Objective
This cess is collected with a view to augment the resources of the Central Pollution Control Board (CPCB) and the State Pollution Control Boards (SPCBs) for the prevention and control of water pollution, as mandated under the Water (Prevention and Control of Pollution) Act, 1974.
Collection and Utilisation Mechanism
Various State Pollution Control Boards (SPCBs) and Union Territory Pollution Control Committees (UTPCCs) in the country deposit the water cess collected (from the industries and local authorities) in the Consolidated Fund of India.
Up to 80% of cess amount collected by SPCBs/ UTPCCs will be reimbursed to them in accordance with Section 8 of the Water Cess Act, 1977 for meeting their approved expenditure requirements (as per the revised formula of water cess reimbursement effective from 01.04.1998). The remaining 20% will be retained by the Central Government for taking up specific projects in the country through Central Pollution Control Board (CPCB), subject to approval by Central Government.
SPCBs/ UTPCCs utilise the funds released to them for preventing and controlling pollution in accordance with Section 17 of Water (Prevention and Control of Pollution) Act, 1974. Expenditure on their establishment and office operations cannot exceed 25% of the amount so received. The remaining amount is utilized on programmes and activities directly related to prevention and control of pollution. SPCBs/ UTPCCs have to inform the Central Government about the programmes and activities carried out by them in utilizing the cess amount reimbursed to them. CPCB monitors the programmes and activities undertaken by them and reports to the Central Government from time to time.
An amount of 250.00 crore each was provided during 2013-14 and 2014-15 for reimbursement to SPCBs/ UTPCCs against remittance of water cess collected and deposited by them in Consolidated Fund of India.
Concessions
If an entity liable to pay the cess installs any plant for the treatment of sewage, it would be entitled to a rebate of 25% of the cess payable, provided it does not consumes water in excess of the maximum quantity specified for it or violate any provisions of section 25 of the Water (Prevention and Control of Pollution) Act, 1974 or any of the standards laid down by the Central Government under the Environment (Protection) Act, 1986.
All industries consuming less than ten kilo litres of water per day are exempted from the levy of cess. However, no such exemption is applicable in case of industries generating 'hazardous wastes' as defined in clause (1) of Rule 3 of the Hazardous Waste (Management and Handling) Rules, 1989, made under sections 6, 8 and 25 of the Environment (Protection) Act, 1986.
References
- http://envfor.nic.in/division/water-pollution
- Central Pollution Control Board
- Water (Prevention and Control of Pollution) Cess Act, 1977
