Context:-
The Plastic Waste Management Amendment Rules notified by the Centre on August 12 acknowledge the gravity of pollution caused by plastic articles of everyday use, particularly those that have no utility beyond a few minutes or hours.
What are the Changes:-
- Under the new rules, the manufacture, sale and use of some single-use goods made with plastic, polystyrene, and expanded polystyrene, such as earbuds, plates, cups, glasses, cutlery, wrapping and packing films, are prohibited from July 1 next year.
- While others such as carry bags must be at least 75 microns thick from September 30, 2021, and 120 microns from December 31 next year, compared to 50 microns at present.
- The decisions follow recommendations made by an expert group constituted by the Department of Chemicals and Petrochemicals two years ago.
- In 2018, India won praise globally for asserting on World Environment Day that it would eliminate all single-use plastic by 2022, a theme that Prime Minister has stressed more than once.
- Yet, policy coherence to achieve the goal has been lacking. The Central Pollution Control Board has reported that 22 States have, in the past, announced a ban on single-use plastic, but this has had little impact on the crisis of waste choking wetlands and waterways and being transported to the oceans to turn into microplastic.
At about 34 lakh tonnes generated in 2019-20, India has a staggering annual volume of plastic waste, of which only about 60% is recycled.
What is more, a recent study of the top 100 global producers of polymers that culminate in plastic waste found six of them based in India.
It is unsurprising, therefore, that in spite of the staggering problem, policymakers have been treading on eggshells. The international view is changing, however, and support for a UN Plastic Treaty is growing; the majority of G7 countries too are supportive of cleaning up the oceans through a charter in the interests of human wellbeing and environmental integrity.
India’s policies on environmental regulation are discordant, lofty on intent but feeble on outcomes, and plastic waste is no different.
State governments have felt no compulsion to replace municipal contracts, where companies are paid for haulage of mixed waste, with terms that require segregation and accounting of materials.
Considerable amounts of plastic waste cannot be recycled because of lack of segregation, leading to incineration, while mixing newer types of compostable plastic will confound the problem.
Patchy regulation has led to prohibited plastic moving across State borders. Now that the Centre has adopted a broad ban, further pollution must end. Microplastic is already found in the food chain, and governments must act responsibly to stop the scourge.
Source:- The Hindu
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Petrol in India is cheaper than in countries like Hong Kong, Germany and the UK but costlier than in China, Brazil, Japan, the US, Russia, Pakistan and Sri Lanka, a Bank of Baroda Economics Research report showed.
Rising fuel prices in India have led to considerable debate on which government, state or central, should be lowering their taxes to keep prices under control.
The rise in fuel prices is mainly due to the global price of crude oil (raw material for making petrol and diesel) going up. Further, a stronger dollar has added to the cost of crude oil.
Amongst comparable countries (per capita wise), prices in India are higher than those in Vietnam, Kenya, Ukraine, Bangladesh, Nepal, Pakistan, Sri Lanka, and Venezuela. Countries that are major oil producers have much lower prices.
In the report, the Philippines has a comparable petrol price but has a per capita income higher than India by over 50 per cent.
Countries which have a lower per capita income like Kenya, Bangladesh, Nepal, Pakistan, and Venezuela have much lower prices of petrol and hence are impacted less than India.
“Therefore there is still a strong case for the government to consider lowering the taxes on fuel to protect the interest of the people,” the report argued.
India is the world’s third-biggest oil consuming and importing nation. It imports 85 per cent of its oil needs and so prices retail fuel at import parity rates.
With the global surge in energy prices, the cost of producing petrol, diesel and other petroleum products also went up for oil companies in India.
They raised petrol and diesel prices by Rs 10 a litre in just over a fortnight beginning March 22 but hit a pause button soon after as the move faced criticism and the opposition parties asked the government to cut taxes instead.
India imports most of its oil from a group of countries called the ‘OPEC +’ (i.e, Iran, Iraq, Saudi Arabia, Venezuela, Kuwait, United Arab Emirates, Russia, etc), which produces 40% of the world’s crude oil.
As they have the power to dictate fuel supply and prices, their decision of limiting the global supply reduces supply in India, thus raising prices
The government charges about 167% tax (excise) on petrol and 129% on diesel as compared to US (20%), UK (62%), Italy and Germany (65%).
The abominable excise duty is 2/3rd of the cost, and the base price, dealer commission and freight form the rest.
Here is an approximate break-up (in Rs):
a)Base Price | 39 |
b)Freight | 0.34 |
c) Price Charged to Dealers = (a+b) | 39.34 |
d) Excise Duty | 40.17 |
e) Dealer Commission | 4.68 |
f) VAT | 25.35 |
g) Retail Selling Price | 109.54 |
Looked closely, much of the cost of petrol and diesel is due to higher tax rate by govt, specifically excise duty.
So the question is why government is not reducing the prices ?
India, being a developing country, it does require gigantic amount of funding for its infrastructure projects as well as welfare schemes.
However, we as a society is yet to be tax-compliant. Many people evade the direct tax and that’s the reason why govt’s hands are tied. Govt. needs the money to fund various programs and at the same time it is not generating enough revenue from direct taxes.
That’s the reason why, govt is bumping up its revenue through higher indirect taxes such as GST or excise duty as in the case of petrol and diesel.
Direct taxes are progressive as it taxes according to an individuals’ income however indirect tax such as excise duty or GST are regressive in the sense that the poorest of the poor and richest of the rich have to pay the same amount.
Does not matter, if you are an auto-driver or owner of a Mercedes, end of the day both pay the same price for petrol/diesel-that’s why it is regressive in nature.
But unlike direct tax where tax evasion is rampant, indirect tax can not be evaded due to their very nature and as long as huge no of Indians keep evading direct taxes, indirect tax such as excise duty will be difficult for the govt to reduce, because it may reduce the revenue and hamper may programs of the govt.