The Ministry of Road Transport has decided to impose a surcharge on old vehicles that are no longer suitable for road use. This additional tax is called “green tax”. It has been decided to curb pollution. It will also inspire people to switch to environmentally friendly alternatives to vehicles.
♦ The green tax will reduce pollution levels. This will also make polluters pay the price for pollution.
♦ The income collected from the green tax will be kept in a separate account. This amount will be used to solve the pollution problem. States have been required to establish state-of-the-art facilities to monitor emissions.
♦ According to the green tax guidelines, transportation vehicles older than eight years will be charged a green tax when renewing the fitness certificate. They will be charged a tax rate of 10% to 25% of the road tax.
♦ At the same time, public transportation such as city buses will pay lower green taxes. However, vehicles used for farming (such as tractors and harvesters) will be exempt.
♦ Green tax is also called pollution tax or environmental tax. This tax is a consumption tax on goods that cause environmental pollution. An economic theory says that if a tax is imposed on polluting emissions, environmental damage will be reduced in a cost-effective manner.
♦ The tax will encourage the behavior changes of households and businesses needed to reduce pollution. The main purpose of the tax is to ensure that polluters are punished due to their pollution creation activities.
♦ Green taxation in India is a relatively new trend. However, RFID tags are being provided and CCTV cameras have been deployed at border entry points. As a result, the emissions of commercial vehicles entering the city are monitored. In cities such as Delhi, environmental compensation fees (EEC) are levied on pollutants based on the size of the vehicle.