The Union Minister for Road Transport and Highways Nitin Gadkari has approved a proposal to levy a “Green Tax” at 10-25 per cent on old polluting vehicles. The proposal will now go to the states for consultation before it is formally notified. With this initiative, the Indian government plans to curb pollution and motivate people to switch to newer, cleaner fuel vehicles.

Commercial vehicles older than eight years could be charged the Green Tax at the time of renewal of fitness certificate, at 10-25 per cent of the road tax, while personal vehicles older than 15 year will face this levy, the statement said, adding that depending on fuel and type of vehicle, the tax will be levied.

In this regard, the taxation regime favours non-diesel, non-petrol vehicles. For instance, vehicles powered by alternative fuels such as Autogas, CNG or ethanol, as well as electric vehicles, will be exempted.

In addition, the Minister also approved the policy of de-registration and scrapping of vehicles that are over 15 years old owned by government departments and public sector undertakings. Once notified, it will come into effect from April 1, 2022. For more information, please visit this link.

3 February