The Union Minister for Road Transport and Highways Shri Nitin Gadkari has approved a proposal to levy a ‘green tax’ on old vehicles. The proposal will now go to the States for consultation before it is formally notified.
- Personal vehicles will be charged a tax at the time of renewal of Registration Certification after 15 years.
- The levy may differ depending on fuel (petrol/diesel) and type of vehicle.
- 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 steeper penalty of up to 50% of road tax for older vehicles registered in some of the highly polluted cities in the country.
