Green Implications

GREEN IMPLICATIONS
Though a few proposals in the 1991 budget may be termed eco-friendly, the overall trend remains hostile towards the environment
Commodity or item	Pre-Budget	New Budget	Remarks
Raw material and items for solar energy and wind-operated power generation	40% import duty	15-20% import duty	Definitely positive step towards greening.
Plywood pulp from rice & wheat straw From bagasse and jute	43.5% excise	20% excise No excise	This is a green step to save forests.
Forestry, horticultural machinery	55% excise	25% excise	Long-term eco-development expected.
Plant and machinery relating to environment protection and pollution control	40% capital cost can be depreciated in the first year	100% capital cost can be depreciated in the first year	Depends on whether industries actually operate abatement devices.
New industrial undertakings in backward states	No tax holiday	5-year tax holiday beginning year of production	Experience shows mainly forestry, mining and chemical industries invest in these states.
Capital goods for coal mining petroleum refining powerplant projects	40% import duty 40% import duty 40% import duty	25% import duty 20% import duty	Expansion of these activities could arm the environment.
Iron ore and unpolished granite	Export duty currently netting Rs. 72 crore	Export duty withdrawn	Pursuing export mat raise environmental cost.
Pesticides pesticide intermediates	110% import duty 65-110% import duty	75% import duty 50% import duty	Ecological imbalance and degradation expected.
Staple fibres	Range of excise rates	Excise rates reduced	Biodiversity is likely to be disturbed in the long run.