Bad news for drivers of old vehicles. The government is preparing to impose ‘Green Tax’ on vehicles older than 8 years. The revenue from the green tax will be used for environmental protection. According to the report, Union Transport and Road Minister Nitin Gadkari has approved the proposal. All states will be sent for consultation before the proposal is notified. Apart from this, registration of all government vehicles older than 15 years will also be canceled from April 1, 2022.

How much will be the green tax
According to the proposal, vehicles older than 8 years will have to pay green tax during the fitness certificate renewal. The amount of green tax can be 10 to 15 percent of road tax. At the same time, green tax will be levied on private vehicles while renewing the registration certificate after 15 years. It is worth noting that in the more polluted cities, the green tax can be up to 50% of road tax at the time of re-registration.

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In fact, the government claims that pollution from old vehicles is high and new rules are to prevent people from using old vehicles. This will motivate people to buy new and less polluting vehicles. According to government estimates, commercial vehicles account for 65-70 per cent of the vehicular pollution.

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These vehicles will get discounts
The proposal also states that the tax slab will also depend on the fuel type of the vehicle. Electric, hybrid, CNG and LPG-powered vehicles may be exempted completely from this tax. Apart from this, tractors and other vehicles used in agricultural work will also be exempt from green tax.