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How Logistics Industry Is Pushing Electric Vehicle Sales in India and the Impact of Green Tax

Representative image.

Representative image.

With Logistics industry pushing the sales of Electric Vehicles in India, implementation of ‘Green Tax’ by the government will have a big impact on the sector.

The logistics sector has seen exponential growth in the last few years. Even in a global pandemic, the sector saw a great rise. Logistics sector with implementation of new technologies at every step has been keeping up with every trend possible. There’s no other sector that undergoes so many changes in a single quarter.

The sector has been very active in bringing EV revolution in India. This will be a big change for the entire nation and the logistics sector is the one that is taking this ahead. With that, the sector has been working towards sustainable growth and has been extremely successful in achieving the same. With incorporation of more environment friendly techniques, we have been on our foot to make a remarkable difference. Along with everything India joining the World Logistics Passport has also contributed to the growth of the national logistics sector.

With everything going on, the implementation of the ‘Green Tax’ by the government will have a big impact on the logistics sector. Mr. Nitin Gadkari, Union Minister of Road Transports and Highways, announced the imposition of Green Tax on older vehicles in order to help the sustainability of our ecosystem. The scheme expects vehicles to pay 50% of the road tax and will be applicable for petrol & diesel vehicles.

According to the ministry, transport vehicles older than eight years could mainly fall under the Green Tax radar (at 10-25 % of road tax) right after they will get the notification of renewal of a vehicle fitness certificate. However, public transport vehicles, such as city buses, will see a lower Green Tax, and vehicles that run in the most polluted cities in India will serve a higher tax. Next month onwards, vehicles older than 15 years old will be owned by government departments and public sector undertakings.

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It’s a great initiative by the government to protect the environment from pollution. The move comes at a time when the automotive sector is recovering from the damage caused by the pandemic. The logistics sector is years old and the change of vehicles that are causing harm to the environment is needed now to have a reliable future. This law comes as a push for the entire sector to have an eco-friendly growth model. With the EV revolution taking place, it should be easy for the sector to adapt to this law to bring the necessary changes. We as a sector need to work along with the government in order to ensure the wellbeing of our planet and countrymen.

That said, we like other logistics-tech companies have always aimed at having a sustainable plan, keeping the well-being of the environment in play. Our model has always aimed at being better and being better includes the wellness of the environment. Our sector is among the first few who hopped on the EV revolution, understanding how important it will be in the coming time. As an industry, we always worked along every impactful government policy, and even with the ‘Green Tax’ imposition we’ll stand strong with the government. All the logistics solution providers already have a plan post imposition and have been working on the same. With new technologies in, it shouldn’t be difficult for the logistics sector to adapt to this change.

We are in the new-age and we should focus on creating a sustainable ecosystem and contribute whatever we can as a sector for general wellness. The evolution of EV is what we should all focus on since that is the future and sooner or later we will all be with it. We should expect our sector to be more elastic in adapting to these changes proposed by the government in order to move towards a greener economy.

Disclaimer:This article is authored Pushkar Singh, CEO & Co-founder, LetsTransport. All views are personal.

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first published:April 21, 2021, 08:55 IST