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Maruti Suzuki Chairman Welcomes Green Tax, Says Proper System Needed for Fitness Certification

File photo of Maruti Suzuki Chairman R C Bhargava. (Image Source: Reuters)

File photo of Maruti Suzuki Chairman R C Bhargava. (Image Source: Reuters)

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.

Industry veteran and Chairman of Maruti Suzuki RC Bhargava, has welcomed MoRTH’s move to approve Green Tax, but said that a secure framework was required for regular fitness certificate.

“The proposed policy for green tax and scrapping of government vehicles has the right intention and object. I hope the government goes further and effectively implements regular fitness certification for cars and commercial vehicles," said Bhargava in an exclusive interview with CNBC-TV18.

He additionally stated that fitness certificates should be unmistakably shown on the windshield of the vehicle.

nion 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.

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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.

Minister of Road Transport and Highways, Nitin Gadkari, has additionally proposed a scrapping strategy for government vehicles more seasoned than 15 years. This scheme, if notified, would come into force from first April, 2022.

Sources at CNBC-TV18 suggests that the proposed Green Tax will be a precursor to the comprehensive vehicle scrapping policy for all automobiles. An inter-ministerial group is exploring two models for India’s scrapping law, one which provides incentives to the customer for scrapping in the form of a GST, road tax and registration cost rebate on the purchase of a new vehicle and second, a scrapping policy driven by disincentives, which raise the cost for renewing the fitness certificate of a polluting vehicle. This has been a longstanding demand of India’s auto sector and industry experts believe that an incentive-based scrapping policy would drive demand for new vehicles.

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Notwithstanding, Bhargava accepts that motivations for rejecting won't encourage long haul supported interest. "An impetus based approach is consistently for a brief period. India isn't shy of interest at the present time. The greater concern is that the auto area development has been consistently declining and has boiled down to 1.5 percent and thusly we need long haul supported interest. A motivator based rejecting strategy would not drive long haul supported interest that is required," he said.

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