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Panel suggests tax on solid waste management services
December, 19th 2008
With the aim of meeting financial resources for effective waste management services, a parliamentary panel has recommended imposition of tax for the services provided. At present there is no tax on waste management services. The Standing Committee on Urban Development has suggested that the possibility of levying direct tax for waste management services need to be explored since it is a common public utility like water and electricity. Urban India produces about 42 million tonnes of municipal solid waste annually and 1.15 lakh metric tonnes per day (TPD). Out of this 83,378 TPD is generated in 423 class-1 cities. Although urban local bodies (ULB) spend between Rs 500 and Rs 1,500 per tonne on solid waste management, less than five per cent of this amount is used for treatment and disposal waste after spending 60 per cent to 70 per cent on collection and 20 per cent to 30 per cent on transportation. The committee headed by Mohd Salim has recommended that the Urban Development Ministry should initiate steps for levying tax to generate more financial resources for treatment and disposal of waste. The 13-member committee has noted that lack of funds with ULBs has been identified as a major hindrance in proper solid waste management.
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