At the outset, I wish to clarify that the Bill does not seek to impose a new or fresh cess, much less a cess at a higher rate than what is already in force. The Bill only seeks to provide for collection of a cess at precisely the same rate as has been collected for several years now from the time of the abolition of the salt duty in 1947. The levy of a charge on the salt manufactured in private and in Central Government salt factories at the rates now in force was decided upon (100) in 1947, and a notification under rule 37 of the Central Excises and Salt Act was promulgated simultaneously with the abolition of the salt duty. The abolition of the salt duty, a step of historic importance, is fresh in the minds of all of us. I need not recall to the minds of hon. Members the very great importance that was rightly attached, if I may say so during our freedom struggle, to the issue of the abolition of the salt duty. The move for which such abolition entered an important and dramatic phase (200) in 1931 when Mahatma Gandhi launched the satyagraha movement and embarked on the Dandi march. The non-violent struggle ended successfully with the signing of the Gandhi-Irwin Pact which permitted certain relaxations on the collection and manufacture of salt by local residents in villages and immediately adjoining areas where salt could be made. It was, however, only after our national leaders assumed office in 1996 that it was possible finally to abolish the salt duty on 1st April 1997, much after Independence. It was decided then (300) that salt duty would not be used, as it was until then, as a major source of revenue. At the time the step to abolish the salt duty was taken, the Government considered the matter fully and decided that it was necessary to have an organization which should not only regulate the production of salt in India, but also concentrate on improving the quality, increasing the production and, in short, developing the salt industry in a comprehensive and planned way. As a means to implement this policy, a notification was issued in 1997 by the Government. (400) The present Bill is intended to regulate the collection of this cess at the same rates as at present under the authority of a statute. There has been some doubt expressed in recent times about the propriety of Government levying this cess on the basis of the Central Excises and Salt Act and the rules thereunder. An opinion has been given that it would be better to put the levy on a statutory basis. This is one of the reasons for the present Bill. The second, and what I consider the more important object, is to lay down in the (500) Act itself the purposes for which the sums so collected should be utilized. The house is well aware that we have similar cesses on the production of some other commodities which are collected, and after meeting the administrative expenses, the proceeds expended on the promotion of those particular industries. I may mention, for example, the cess on tea, coffee, rubber, for the development of these respective industries and the marketing of such products. We have also the example of the cess on coal levied in the interests of coal mine labour welfare and conservation and safety in coal mines. (600) Quite recently, an Act has been passed that a cess shall be levied on mill cloth with the object of assisting and encouraging khadi and other cottage industries. The present measure, as I have explained, is a simple one. The cess is to be levied and spent for the regulation and development of the salt industry in a scientific and planned manner. I would like to refer, at this stage, to the Salt Advisory Committee, which is consulted by the Government of India on problems relating to the salt industry. The Committee also includes representatives of the Central Government (700) and the Governments of the various States which in the principal producers of salt, representatives of salt manufacturers and traders and a representative of the labour engaged in the salt industry. The Committee has expressed itself in favour of the continuance of the cess and of the proceeds being spent on the development of the salt industry. The Salt Advisory Committee further advised in 2000-01 that the then existing exemption from the cess on the salt exported by sea to Calcutta should also be withdrawn. After their advice was acted upon by the Government with effect from (800) February 2002, all salt produced by the licensed manufacturers of salt in India has been subject to the levy of the cess.
