The Union Minister of Transport and Roads, Nitin Gadkari, approved a government proposal to impose a “green tax” on old vehicles.
India’s Ministry of Road Transport and Road Transport will now impose a “green tax” on all old vehicles used for transportation. The idea is to clean up the environment by gradually removing unsuitable and polluting vehicles. The revenue collected through the green tax will be used to combat pollution.
The Union Minister for Road Transport and Highways, Nitin Gadkari, approved a government proposal to impose a “green tax” on old vehicles that pollute the environment. The proposal will now go to the states for consultation before being formally notified.
The motive behind the decision
- People are encouraged not to use older vehicles that cause more pollution.
- People are encouraged to buy new and less polluting cars.
- Vehicles over 15 years old belonging to various government departments and primary support units will be decommissioned.
The new scrappage policy for government vehicles will go into effect on April 1, 2022.
Details about the green tax
Under the proposal, a green tax could be imposed on vehicles older than 8 years at the time of renewal of the certificate of fitness.
The amount can range between 10% and 25% of the road tax.
In the case of personal vehicles, a green tax can be imposed upon the renewal of the registration certificate after 15 years.
The green tax can go up to 50% of the road tax when re-registering the car in highly polluted cities.
Fewer taxes are imposed on public transport vehicles, such as city buses.
Differential rate according to the type of fuel (petrol/diesel) and the type of vehicle. With the exception of vehicles used in agriculture such as tractors, combines, plows, etc.
Commercial vehicles, which represent about 5% of the total vehicle fleet, are estimated to contribute approximately 65-70% of total vehicle pollution. The oldest fleet, generally manufactured before the year 2000, represents less than 1% of the total fleet, but contributes approximately 15% of the total pollution from vehicles. These old vehicles pollute between 10 and 25 times more than modern cars.