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5.GREEN TAX
Recently, the Centre announced its plans to impose a “green tax” on older vehiclesin amove to disincentive the use of polluting vehiclesand to curb pollution in the country.
About:
- The Ministry of Road Transport and Highwayswill levy a green tax ontransport vehicles older than eight yearsat the time of renewal of fitnesscertificateat the rate of 10% to 25% of road tax.
- The revenue collected through the green tax will be kept in a differentaccount and will only be utilised for tackling pollution.
Exemptions:
Vehicles like strong hybrids, electric vehiclesand those running on alternatefuels like CNG, ethanol and LPG and vehicles used in farming, such as tractor,harvesters and tillers will be exempted.
Differential Taxation:
- Personal vehicles are proposed to be charged green tax at the time of renewalof registration certification after 15 years.
- Public transport vehicles,such as city buses, will be charged lower green tax.
- Higher green tax (50% of road tax)will be levied on vehicles beingregistered in highly polluted cities.
- Differential tax will also be charged depending on fuel (petrol/ diesel) and thetype of vehicle.
Combat Health Hazards by Vehicular Pollution:
- The major pollutants likecarbon monoxide (CO), nitrogen oxides (NOx), photochemicaloxidants, lead (Pb), particulate matter (PM), can have direct as well asin-direct impact, like reduced visibility, cancers, respiratory and cardiovascularailments, increased mortality, morbidity and impaired pulmonary function.
Carbon Pricing:
It is an instrument that captures the external costsof greenhouse gas (GHG) emissions the costs of emissions that thepublic pays for such as:
- Damage to crops,
- Health care costs from heat waves and droughts and
- Loss of property from flooding and sea level rise.
Carbon pricing ties them to their sources through a price, usually inthe form of a price on the carbon dioxide (CO2) emitted.
Criticism of the Green Tax:
- Imposing additional tax on Public transport such as buseswill transfer the burden on the public which is already suffering income lossespost pandemic crisis.
- There are already high rates of taxation on petrol and diesel, greentax will further spike the burden on vehicle owners.
- Green tax will contribute in increasing the overalltransportation cost which could surge the overall inflation.
Way Forward
- Fighting air pollution is a public issue and subsequentlyeverybody’s responsibility. Therefore, along with measures like green tax, the need isfor concerted and coordinated efforts with active involvement of all the stakeholders.
- This should include the Government (national, state and local governments), cities,community at large and individuals.
SOURCE: PIB