New Delhi, Dec 27 (UNI) The country's top industry bodies have called for offering tax incentives and favourable policies for promoting green products in the upcoming Union Budget.

In its Budget recommendations to Finance Ministry, Federation of Indian Chambers of Commerce & Industry (Ficci) has proposed to extend concessional tax rate of 15% to companies which invest in green technologies on or after a specified date.

It has also suggested allowing full deduction towards investment/purchase of green technology assets.

"This will encourage replacement of obsolete technology with green technology," the industry body has said noting that promotion of green technology is critical to India’s commitment towards net zero emissions target.



Confederation of Indian Industry (CII) has urged the government to come up with a green procurement policy which would encourage buying of materials that have least impact on environment and public health.

The industry association has also recommended to support commercialisation of new technologies for the transition to low carbon/zero carbon pathways.



The other industry grouping PHDCCI has said that government must consider the provision of a differentiated and preferential set of incentives to companies that demonstrate leadership in sustainability performance.

"Companies with high “Trustmark” ratings should be provided with incentives like priority fast track clearances, purchase preferences, lower levies of central excise duty for manufacture of “green”, eco-friendly products, and weighted deduction for the expenditure under the Income Tax Law, even if they have opted for concessional tax regime under Section 115BAA or 115BAB of the Act," it has said.

The industry body said that government can support the development of a Responsible Business “Trustmark” Rating System that could be used to convey to the consumer a company’s environmental and social performance.

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