Transport Ministry Nod To Levying ‘Green Tax’ On Polluting Vehicles

Transport Ministry Nod To Levying 'Green Tax' On Polluting Vehicles

New Delhi: The Union Minister for Road Transport and Highways Nitin Gadkari on Monday said his department has approved a proposal to levy “Green Tax” on old vehicles that are polluting the environment.

He said that the proposal will now go to the states for consultation before it is formally notified.

According to the proposal, 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, while personal vehicles will be charged Green Tax at the time of renewal of registration certification after 15 years.

The new proposal also said that public transport vehicles, such as city buses, will be charged lower Green Tax.

It further said that the vehicles being registered in highly-polluted cities will have to pay higher green tax (50 per cent of road tax) depending upon the fuel type (petrol or diesel) and the type of vehicle.

The proposal further said that vehicles such as strong hybrids, electric vehicles and alternate fuels such as CNG, ethanol, LPG etc and vehicles used in farming, such as tractor, tiller etc, must be exempt from Green Tax.

The proposal further said that revenue collected from Green Tax will be kept in a separate account and used for tackling pollution, and for states to set up facilities for emission monitoring.

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