Lower GST on air purifiers can’t contain air pollution

It is anyone’s guess whether people will be happy or sad to hear the news that the Goods and Services Tax Council may consider cutting GST on air and water purifiers for domestic use. The proposal is to reduce the rate from 18 per cent to five per cent by reclassifying these items as essential rather than discretionary consumer goods. Cheaper goods always bring a smile on everyone’s lips, but in this case reduction in the tax rate and the corresponding price structure will come with a tacit acceptance-that air pollution in Delhi and the surrounding regions is something nothing can be done about, that the people of north India are condemned to suffer toxic air at least in winter, that the government is helpless and the best it can do is make air purifiers less costly. Last week, the Delhi High Court had directed the Central government to respond within 10 days to a public interest litigation (PIL) seeking lower GST on air purifiers, owing to the worsening air quality in the national capital. The government’s initial response was negative. It maintained that only the GST Council, which has representatives from the Central and State governments, could take a call on GST rates. A few days later, however, the government seems to have changed its mind.
Whatever the final decision over the question may be, it is certain that either way, this will have very little effect on the situation. To begin with, almost all poor people will not benefit, because the nature of their jobs and their homes is not conducive to enjoying the health benefits of air purifiers. And even all among the non-poor—traffic police constables, for instance—cannot get this shield. One must understand that prevention is better than cure. Instead of reducing the GST rate on air purifiers, the government must get serious about checking, if not eradicating, air pollution. It should look for real solutions, like flue gas desulfurization (FGD). According to a study by the Centre for Research on Energy and Clean Air (CREA), sulphur dioxide (SO2) emissions of 12 coal-based thermal power plants located in a 300-km radius of Delhi can be reduced by as much as 67 per cent if these facilities adopt the FGD technology. This seems to be the potential to ameliorate the situation, but the Central government did the opposite earlier this year.
In a bid to bring down electricity costs by 25-30 paise per unit, it eased sulphur emission rules for most coal-fired power plants. It placed cheaper electricity over public health. Unsurprisingly, the air pollution emergency in the national capital continues to plague its citizens, despite the city being under ‘triple-engine sarkar’—the Bharatiya Janata Party in power at the Central, state, and municipal levels. If a triple-engine sarkar was expected to result in policy coherence and smooth decision making, that has not happened. The consequences of the desulfurization decision, and other acts of omission and commission, are evident: schools shut, construction halted, hospitals reporting spikes in respiratory illnesses, and many businesses, like tourism, are adversely affected, as the authorities jump from one GRAP (graded response action plan) level to the other. Lowering GST on air purifiers fits perfectly into this pattern: the government doing nothing while appearing to be active and concerned about people’s health.

















