What’s in the news?

• The Union Minister for Road Transport and Highways Nitin Gadkari has approved a proposal to levy a ‘green tax’ on old vehicles in a bid to protect the environment and curb pollution. 

News in Detail

• Personal vehicles will be charged a tax at the time of renewal of Registration Certification after 15 years. The levy may differ depending on fuel (petrol/diesel) and type of vehicle. 
• 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.
• Vehicles used in farming, such as tractor, harvester and tiller will also be exempted from the tax.
• The proposal will now go to the States for consultation before it is formally notified. The proposal includes 10-25% of road tax on transport vehicles older than eight years at the time of renewal of fitness certificate.
• The proposal on green tax also includes a steeper penalty of up to 50% of road tax for older vehicles registered in some of the highly polluted cities in the country. 

Scrapping of vehicles policy

• The Minister also approved the policy of deregistration and scrapping of vehicles owned by government departments and PSUs, which are above 15 years in age. 
• It is to be notified, and will come into effect from 1st April, 2022.

Reference:

1. https://economictimes.indiatimes.com/news/economy/policy/transport-minister-nitin-gadkari-okays-green-tax-for-older-polluting-vehicles/articleshow/80451657.cms