Union Minister for Road Transport and Highways Nitin Gadkari has approved a proposal to levy a 'Green Tax' on old vehicles which are polluting the environment. 'Proposal will now go to the states for consultation before it is formally notified' said Ministry of Road Transport & Highways.
Transport vehicles older than 8 years could be charged Green Tax at the time of renewal of fitness certificate, at the rate of 10% to 25% of road tax.
This comes after the government, in November, announced that a cabinet note has been written for the new vehicle scrappage policy in India. The Ministry of Road Transport and Highways has reportedly formulated a note on the creation of an ecosystem for voluntary and environment-friendly phasing out of old polluting vehicles.
A month before that, a Cabinet note on the issue was ready and sent for further consultations with the stakeholders on PMO directions.
"The Ministry of Road Transport and Highways has formulated a note for the Cabinet on creation of an ecosystem for voluntary and environment-friendly phasing out of unfit and old polluting vehicles," Minister of State for Road Transport and Highways VK Singh said in reply to a question in the Rajya Sabha.