If you are familiar with the traffic rules of the UK and other European countries you would know about a certain term as a carbon tax. This is a special tax charged by the government on the citizens utilising private vehicles which are old. The reason for charging an extra tax is because older vehicles emit more carbon emissions. This is primarily because their efficiency is decreased.
Now, this tax will be implemented in India with a name called Green Tax. Vehicles that are older than 8 years will have to pay taxes at the time of renewal of their 15-year certificate. The range of this tax will vary between 10% to 25% of road tax. Further, this is going to be a differential tax. Hence, it will differ from city to city, vehicle to vehicle. The differential tax will also be based on the type of fuel used for the vehicle. Diesel contributes more to carbon emissions as compared to petrol and hence will have more In the most polluted cities it can be as high as 50%
All of these tax will be used for environment-related projects. Vehicles running on CNG and LPG, hybrid cars, EVs will be exempted from this tax. At the same time vehicles used in farming such as tillers, tractors will also be exempted from the tax.
The tax is based on the famous 'Polluter pays Principle' that came up in the 1992 Rio Declaration. It is so to promote sustainable development.
It is high time that we switch towards the use of CNG and LPG for our vehicles. Your existing vehicles can be easily converted into a hybrid. Your existing vehicles can be easily converted into hybrids and it is a better alternative for your pocket in the long term as the prices of CNG and LPG are lower than that of Petrol and Diesel.
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