Assam to levy green cess on polluting industries, second-hand vehicle transfers

Guwahati, July 10: In a first-of-its-kind move aimed at making polluters pay for environmental damage, the Assam government on Friday announced the introduction of a Green Cess on a range of environmentally sensitive activities, including stone crushers, brick kilns, coke-based industries, transfer of second-hand vehicles and commercial extraction of groundwater.

Announcing the measure in the 2026-27 Budget, Finance Minister Jayanta Mallabaruah said the new levy is guided by the principle that “those who contribute to environmental degradation should also contribute towards its mitigation.”

The government said the cess would also apply to other polluting industries and activities that may be notified later, signalling a wider push to integrate environmental costs into economic activity.

Revenue generated from the Green Cess will be earmarked for afforestation, pollution control, biodiversity conservation, climate change adaptation, green energy projects, water resource management and other environmentally sustainable infrastructure, making it one of the few dedicated green financing mechanisms proposed by the state.

The announcement comes as the government seeks to strengthen Assam’s own revenue while simultaneously pursuing an ambitious green agenda. The budget also provides incentives for cleaner alternatives, including a 3% motor vehicle tax subvention for electric vehicles, extension of the electricity duty exemption on renewable energy projects, and a sharp reduction in VAT on piped natural gas from 14.5% to 5% to encourage cleaner fuels.

The Green Cess is part of a broader environmental strategy unveiled in the Budget, which includes plans to transform Assam into the Green Energy Hub of Northeast India, backed by investments across hydropower, solar, battery storage and other energy projects.

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