New Delhi, Jan 18: Amid the global focus on climate change and initiatives required to save the world from the environment crisis, the Confederation of Indian Industry (CII) submitted specific recommendations for the Union Budget 2010 aimed at the very same issue.
Considering the fact that installation of energy efficient technologies often involve signification costs along with the accelerated depreciation, which is provided currently currently, a tax credit should be provided equal to 150pc of expenditure incurred on cost and installation of energy saving technologies, CII said in its first suggestion.
For promoting installation of energy conservation or improvement technologies in the real estate sector, CII recommended a tax deduction to individuals for undertaking such investment in the house or property they are living in and also to builders who invest in these technologies while constructing green buildings.
Based on the observation that tax deduction has always stimulated individuals to save or invest more, CII recommended tax incentives to individuals for investing in companies engaged in generation of renewable energy or similar businesses resulting in water efficiency, carbon emission reduction, resulting in higher cash flow to these industries.
To encourage the use of environment-friendly petrol private cars with low emissions and high fuel efficiency, a higher rate of depreciation should be offered to buyers of environment-friendly petrol private cars, CII said in a statement released on Monday, Jan 18.
CII's fifth recommendation said that the benefits of tax holiday under section 80IA of the ITA could be extended to undertakings engaged in the manufacture of advanced energy efficient products, manufacturers of equipments used in solar, wind, and other environment friendly resources.
In its sixth recommendation, CII proposed tax credits to encourage water conservation through deduction in income tax and more.