“Green tax” to be soon imposed on old vehicles, Gadkari okays proposal

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New Delhi, 25 January: Union Road Transport and Highways Minister Nitin Gadkari has approved the proposal to impose “Green Tax” on old vehicles polluting the environment. The proposal will now go to the states for consultation before being formally notified.

The Road Transport Ministry said on Monday that transport vehicles older than eight years can be taxed at the rate of 10 to 25 percent of the road tax at the time of renewal of the fitness certificate. Green tax can be imposed on private vehicles at the time of renewal of registration certification after 15 years. Public transport vehicles, such as city buses, should be charged less green tax.

In the proposal, there is a provision to collect 50 percent of the road tax in the highly polluted cities from the registered vehicles. At the same time, it has been said to exempt green vehicles from electric vehicles and alternative fuels such as CNG, ethanol, LPG, etc. Vehicles used in farming such as tractors, harvesters, tillers etc. are also exempt from green tax.