Union Minister for Road Transport and Highways has approved a proposal to levy a “Green Tax” on old vehicles.
Environmental Tax- imposed on the environment polluting goods or activities.
GUIDELINES
Transport vehicles older than 8 years could be charged Green Tax at the time of renewal of fitness certificate at the rate of 10 to 25% of the 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% of Road Tax) for vehicles being registered in highly polluted cities.
Differential tax, depending on fuel (petrol/diesel) and type of vehicle
EXEMPTIONS
Vehicles like strong hybrids, electric vehicles and alternate fuels like CNG, ethanol, LPG etc to be exempted
Vehicles used in farming, such as tractor, harvester, tiller etc to be exempted
BENEFITS
It will lessen environmentally polluting vehicles.