[Jan] Green tax

Question 1

What is green tax?

Answer 1

Transport vehicles older than 8 years could be charged Green Tax at the time of renewal of fitness certificate, at the rate of 10 to 25 % of road tax;

Personal vehicles to be charged Green Tax at the time of renewal of Registration Certification after 15 years.

Public transport vehicles, such as city buses, to be charged lower Green tax.

Higher Green tax (50% of Road Tax) for vehicles being registered in highly polluted cities.

Differential tax, depending on fuel (petrol/diesel) and type of vehicle.

The policy provides exemptions
for tractors, harvesters and tillers used in farms, hybrid,
electric, ethanol, LPG/CNG powered vehicles

Question 2

What is policy by GOI named Corporate Average Fuel Economy (CAFE),2016?

Answer 2

• They aim at lowering fuel consumption (or improving fuel efficiency) of vehicles by lowering carbon dioxide (CO2) emissions, thus serving the twin purposes of reducing dependence on oil for fuel and controlling pollution.
• Corporate Average refers to sales-volume weighted average for every auto manufacturer. The norms are applicable for petrol, diesel, LPG and CNG passenger vehicles. CAFE regulations in India came into force from April 1, 2017. Under this, average corporate CO2 emission must be less than 130 gm per km till 2022 and below 113 gm per km thereafter.
• CAFE also regulates CO2 emissions, while other pollutants such as carbon monoxide, oxides of nitrogen and sulphur are covered by Bharat Stage fuel standards.
• As per BS-VI emission norms, petrol vehicles will have to effect a 25% reduction in their NOx, or nitrogen oxide emissions. Diesel engines will have to reduce their HC+NOx (hydrocarbon + nitrogen oxides) by 43%, their NOx levels by 68% and particulate matter levels by 82%.