In a statement issued by the Ministry of Road Transport and Highways, Union Minister Nitin Gadkari has approved a proposal to levy a ‘green tax’ on old vehicles which are polluting the environment in a bid to protect the environment and curb pollution.
“It is estimated that commercial vehicles, which constitute about 5% of the total vehicle fleet , contribute about 65-70% of total vehicular pollution. The older fleet, typically manufactured before the year 2000 constitute less that 1 % of the total fleet but contributes around 15% of total vehicular pollution. These older vehicles pollute 10-25 times more than modern vehicles,” the statement from the ministry of road transport and highways said.
Under the scheme, transport vehicles older than eight years could be charged green tax at the time of renewal of fitness certificate at the rate of 10 to 25 per cent of road tax.
“Personal vehicles to be charged green tax at the time of renewal of registration certification after 15 years; public transport vehicles, such as city buses, to be charged lower green tax; higher green tax (50 per cent of road tax) for vehicles being registered in highly polluted cities,” the statement said.
Vehicles like strong hybrids, electric vehicles and those running on alternate fuels like CNG, ethanol and LPG will be exempted while the revenue collected through the green tax will be utilised for tackling pollution. Apart from strong hybrids, electric vehicles and alternate fuels like CNG, ethanol, LPG etc, vehicles used in farming, such as tractor, harvester and tiller will be exempted from the tax also. Depending on fuel (petrol/diesel) and the type of vehicle, differential tax will be charged.
According to the ministry, the revenue collected from the green tax will be kept in a separate account and will be used for tackling pollution.
Listing the benefits of the green tax, The ministry said that the green tax will dissuade people from using vehicles which damage the environment and motivate them to switch to newer, less polluting vehicles. It will reduce the pollution level, and at the same time make the polluter pay for pollution.
The proposal will now go to the states for consultation before it is formally notified and the states will be required to set up state-of-art facilities for emission monitoring, the statement added.
