The government plans to impose green tax on old polluting vehicles soon in a bid to protect environment and curb pollution. Vehicles like strong hybrids, electric vehicles and those running on alternate fuels like CNG, ethanol and LPG will be exempted.
The proposal will now go to the states for consultation before it is formally notified. Under this scheme, transport vehicles older than eight years could be charged green tax at the time of renewal of fitness certificate at the rate of 10 to 25 per cent of road tax. Differential tax will also be charged depending on fuel and the type of vehicle.
Vehicles used in farming, such as tractor, harvestor and tiller will be exempted from the tax. The revenue collected through the green tax will be utilised for tackling pollution.