Approval on a proposal of ‘Green Tax’ by Nitin Gadkari on old polluting vehicles.
Key sentence:
- Under the policy, green taxes could be imposed on transport vehicles older than eight years at the rate of 10 to 25 per cent of road tax at the time of renewal of the fitness certification.
- In an attempt to protect the environment and curb emissions, the government aims to introduce a green tax on old polluting vehicles soon.
- The Ministry of Road Transport and Highways Nitin Gadkari stated in his statement on Monday:
The Ministry of Road Transport and Highways said on Monday that vehicles such as efficient hybrids, electric vehicles as well as those operating on renewable fuels such as CNG, ethanol, and LPG would be exempted while revenues raised through the green tax will be used to counter pollution.
“The Union Minister for Road Transport and Highways Nitin Gadkari also accepted a request to levy a ‘green tax’ towards old vehicles that are polluting the atmosphere,” it says in a statement.
Things mentioned in the statement:
Before it is officially told, the plan will also go to the States for review, it said. Through the scheme, green taxes could be imposed on transport vehicles older than eight years at the rates of 10 to 25 per cent of road tax during the period of renewal of the fitness certification.
‘Private vehicles to be subject to green tax after 15 years at that point of renewal of registration accreditation; public transport vehicles to be subject to green tax, including such city buses, to be subject to lower green tax; high green tax (50 per cent of road tax) for registered vehicles in strongly polluted cities,’ the declaration said.
Different tax on different vehicles:
Depending on the fuel (petrol/diesel) as well as the type of car, a differential tax may also be paid.
In addition to efficient hybrids, electric vehicles, and alternative fuels including CNG, ethanol, LPG, etc., the tax would be exempted for vehicles used in agriculture, such as tractors, harvesters, and tillers, the statement said.
The revenue collected through the green tax, as per the ministry, will be held in a different account and then used to counter pollution. The states would be expected to set up state-of-the-art pollution monitoring facilities, it added.
Ministry on advantages of Green taxes:
Mentioning the advantages of the green tax, the ministry claimed that it will prevent people from ever using vehicles that harm the environment as well as encourage them to move to newer, less polluting cars.
“Green tax would reduce the pollution level as well as make the polluter paying for pollution,” he said.
