Charge that is imposed compares to nothing with the profits water companies make
KARACHI: The Supreme Court has imposed a Re1 per litre charge on ground water extracted by water companies. Albeit given the scarcity of water and the rapidly-depleting groundwater reserves, the charge that is imposed compares to nothing with the profits that these water companies make. The mushroom growth of drinking water companies over the past few years is evidence in the context.
If the cost of water extraction from ground reserves is put against water companies’ profits, such companies can be easily charged moderate taxes, which would do good to the government by bringing in more money as tax. Further, the benefit can be shifted to the consumers as well with provision of water at reduced rates, particularly in areas where tap water is undrinkable.
It is one area where the government can easily impose more surcharge without putting extra burden on manufacturers or consumers.
Minhal Akram
Published in The Express Tribune, January 13th, 2019.
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