New Delhi: Transport Minister Nitin Gadkari has approved the introduction of a ‘green tax’ on vehicles older than eight years. Green Tax aims to encourage people to replace obsolete, new vehicles that cause air pollution. The green tax will be 10 to 25 percent of the road tax. If the vehicle is found to be more than eight years old at the time of fitness renewal, the tax will be levied.
Vehicles re-registered in areas with high air pollution may be taxed up to 50 percent of the road tax. The central proposal has been sent to the states. The notification will be issued after considering the views of the states. There is also a proposal to destroy government vehicles that are more than 15 years old. It will be implemented from April next year. Taxes vary or are waived depending on fuel and vehicle.