The Road Transport Ministry on 25th January has approved a new form of Tax called ‘Green Tax’. This tax will be imposed on older vehicles that are unfit and pollute the environment. This is to improve the air quality in cities and phasing out unfit and polluting vehicles. At the time of renewing their fitness certificate, private vehicles older than 15 years could be taxed and transport vehicles older than eight years would be taxed if they don't meet the criteria. The tax amount will depend on fuel and type of vehicle. Those operating on clean technologies like hybrids, electric or ethanol and those used in farming will not have to pay Green Tax. Revenue collected from the green tax would be kept in a separate account and used for tackling pollution. The state governments will be consulted before the proposal is finalised.


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