Three new ‘green taxes’ coming

~ Mobile phones, TVs, computers and electric items will cost more

By Nadia Fazlulhaq

Customers buying items, including mobile phones, televisions, electrical items and computers which could be recycled later, will have to pay a tax as recycling charges from next year. The levy known as the ‘green cess’ is part of the Budget and will be implemented when the required regulations are passed in parliament, according to Central Environmental Authority (CEA) Chairman Udaya Gammanpila.

“The person who buys these items has to be responsible for the cost of recycling also. Usually the State has to use public money for recycling and disposing. Now the customer will have to bear the cost,” Mr. Gammanpila said. He said the proposed Environment Conservation Levy Act would introduce two other taxes in a move to protect the environment.

“A ‘Green Surcharge’ on polythene items is one of them. This tax is being enforced to encourage consumers go for eco-friendly items instead of items made of polythene or plastic,” he said. The other tax is the ‘green levy’ of Rs. 20 a month from every permanent residence with a vehicle, a phone and electricity. Although a decision on how to collect this tax has not been made, the CEA is hoping to charge it directly through Treasury collections or through the electricity or telephone bill, vehicle revenue licence or household rate. It hopes to raise Rs.1 billion annually from this household tax.

“Usually the Treasury annually allocates an amount for environmental conservation through funds raised from other taxes. But now we are hoping to continue our conservation projects by these taxes and surcharges,” Mr. Gammanpila said. He said they were hoping to set up a body to monitor the collection of the new taxes.