“Green Tax” Proposed for Older Vehicles

New Delhi – Ministry of Road Transport and Highways is planning to levy ‘Green Tax’ or pollution tax for older petrol and diesel vehicles i.e. Plying for more than 15 years. Other vehicles like strong hybrids, electric vehicles, agricultural vehicles and those running on alternate fuels like CNG, ethanol and LPG will be exempted. Now draft has been prepared and sent to Indian state government for suggestion. The mandate is expected to be notified and come into effect from April 1, 2022.

The aim of “Green tax” is to stop the people using older vehicles that affect the environment and taxes will motivate them to switch to newer vehicles reduces pollution.

For commercial vehicles older than eight years the ‘Green tax’ would be charged at the time of renewal of fitness certificate (FC) at the rate of 10 to 25% of the road tax, and personal vehicles are to be charged green tax at the time of renewal of registration certification after 15 years. Public transport vehicles like city buses will be charged lower, while a higher tax will be imposed for vehicles registered in highly polluted cities, the ministry said in a statement.