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Green tax

25/1/2021

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The Union Minister for Road Transport and Highways has approved a proposal to levy a “Green Tax” on old vehicles which are polluting the environment. 
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The main principles to be followed while levying the Green Tax are 
  • Transport vehicles older than 8 years and Personal vehicles after 15 years could be charged Green Tax 
  • Public transport vehicles, such as city buses, to be charged lower Green tax
  • Vehicles like strong hybrids, electric vehicles and alternate fuels like CNG, ethanol, LPG etc to be exempted
  • Vehicles used in farming, such as tractor, harvestor, tiller etc to be exempted;
Benefits of the “Green Tax” 
  • To motivate people to switch to newer, less polluting vehicles
  • Green tax will reduce the pollution level, and make the polluter pay for pollution.


Sources : PIB​
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