Central Govt Proposes ‘Green Tax’ On Old, Polluting Vehicles

By OB Bureau On Jan 25, 2021

Govt Proposes Scrapping Of Vehicles Older Than 15 Years; RC Renewal To Cost More — Picture courtesy www.livemint.com

New Delhi: The Centre on Monday approved a proposal to levy ‘green tax’ on old, polluting vehicles.

According to the proposal put forward by Union Ministry of Road Transport and Highways (MoRTH), “transport vehicles older than eight years could be charged Green Tax at the rate of 10% to 25% of road tax.”

This tax will be imposed at the time of renewal of fitness certificate.

The proposal will be sent to states and Union Territories for consultation, informed Transport minister Nitin Gadkari.

The ministry has suggested that a higher ‘green tax’ of around 50 per cent may be imposed on vehicles registered in highly polluted cities. Depending on fuel and type of vehicle, a differential tax could be applicable.

Among other points, the ministry proposed personal vehicles be charged ‘green tax’ after 15 while and public transport vehicles like buses and mini buses be charged a lower amount.

Vehicles used for farming, such as tractors, harvesters and tillers, will be exempted. So will vehicles like strong hybrids, electric vehicles and those using fuels like CNG, ethanol and LPG.