From UPSC perspective, the following things are important :
Prelims level : Green tax
Mains level : Vehicular pollution and its control
The Union Minister for Road Transport and Highways has approved a proposal to levy a ‘green tax’ on old vehicles.
Do read about Green Mobility, India’s FAME-I and II Scheme.
- Personal vehicles will be charged a tax at the time of renewal of Registration Certification after 15 years.
- The policy will come into effect from April 1, 2022.
- The levy may differ depending on fuel (petrol/diesel) and type of vehicle.
- The proposal will now go to the States for consultation before it is formally notified.
- It 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.
- Revenue collected from this tax will be kept in a separate account and will be used for tackling pollution, and for States to set up state-of-art facilities for emission monitoring.
Why such a move?
- To dissuade people from using vehicles which damage the environment
- To motivate people to switch to newer, less polluting vehicles
- Green tax will reduce the pollution level, and make the polluter pay for pollution
Exemptions to this tax
- Vehicles like strong hybrids, electric vehicles and alternate fuels like CNG, ethanol, LPG etc to be exempted;
- Vehicles used in farming, such as tractor, harvester, tiller etc to be exempted;
- The Ministry also approved a watered-down policy of deregistration and scrapping of vehicles, bringing only those vehicles owned by government departments and PSUs and are older than 15 years under its ambit.
- In 2016, the Centre had floated a draft Voluntary Vehicle Fleet Modernization Programme that aimed to take 28 million decade-old vehicles off the road.