Green tax on 8 years old vehicles

Transport vehicles older than 8 years could be charged a tax at the rate of 10-25 per cent of road tax at the time of renewal of fitness certificate. This Proposal will go to the states for consultation before it is formally notified. According to Government, Green tax on 8 years old vehicles Will motivate people to switch to newer, less polluting vehicles.

KEY HIGHLIGHTS OF GREEN TAX 

  • Green Tax proposed on transport vehicles older than 8 years, to be charged at the time of renewal of fitness certificate, at the rate of 10-25% 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 tax
  • Higher Green Tax of up to 50% of road tax for vehicles being registered in highly polluted cities like Delhi-NCR
  • Differential tax, depending on fuel (petrol/diesel) and type of vehicle
  • Exempted vehicles include strong hybrids, electric vehicles, CNG vehicles, ethanol LPG vehicles, tractors, harvestors, tillers, etc

The Green tax on 8 years old vehicles could be as high as 50 per cent of road tax in most polluted cities like Delhi-NCR while there may be a differential rate for petrol and diesel vehicles. Diesel vehicles that are considered more polluting than petrol may attract a higher rate of Green tax on 8 years old vehicles. Already, diesel vehicles older than 10 years are banned in Delhi-NCR as per a ruling by the National Green Tribunal in 2015.