Nitin Gadkari approves proposal for Green Tax on older vehicles

Minister for Road Transportation & Highway Nitin Gadkari has approved the proposal for Green Tax on old polluting vehicles. As per proposal:

- 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 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

- Vehicles like strong hybrids, electric vehicles and alternate fuels like CNG, ethanol,LPG etc to be exempted

- Vehicles used in farming, such as tractor, harvestor, tiller etc to be exempted

As per PIB Press Release, policy will go to states for consultation before being notified. it further notes that - "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."

I think that when notified it will be a great move, discouraging people from keeping the old polluting vehicles. Hoping the tax will be used in investment towards EV infra & other initiatives. While CNG, Ethanol, LPG less polluting than Petrol/Diesel, still pollutes. I hope that long term focus remains on EVs.

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