Maruti Suzuki Chairman Welcomes Green Tax, Says Proper System Needed for Fitness Certification - watsupptoday.com
Maruti Suzuki Chairman Welcomes Green Tax, Says Proper System Needed for Fitness Certification
Posted 27 Jan 2021 03:40 PM

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Maruti Suzuki Chairman Welcomes Green Tax, Says Proper System Needed for Fitness Certification
27-January-2021

Industry veteran and Chairman of Maruti Suzuki RC Bhargava, has welcomed MoRTH�s move to approve Green Tax, but said that a secure framework was required for regular fitness certificate.

�The proposed policy for green tax and scrapping of government vehicles has the right intention and object. I hope the government goes further and effectively implements regular fitness certification for cars and commercial vehicles," said Bhargava in an exclusive interview with CNBC-TV18.

He additionally stated that fitness certificates should be unmistakably shown on the windshield of the vehicle.

Union Minister for Road Transport and Highways Nitin Gadkari has approved a proposal to levy a 'Green Tax' on old vehicles which are polluting the environment. 'Proposal will now go to the states for consultation before it is formally notified' said Ministry of Road Transport & Highways.

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.

Minister of Road Transport and Highways, Nitin Gadkari, has additionally proposed a scrapping strategy for government vehicles more seasoned than 15 years. This scheme, if notified, would come into force from first April, 2022.

Sources at CNBC-TV18 suggests that the proposed Green Tax will be a precursor to the comprehensive vehicle scrapping policy for all automobiles. An inter-ministerial group is exploring two models for India�s scrapping law, one which provides incentives to the customer for scrapping in the form of a GST, road tax and registration cost rebate on the purchase of a new vehicle and second, a scrapping policy driven by disincentives, which raise the cost for renewing the fitness certificate of a polluting vehicle. This has been a longstanding demand of India�s auto sector and industry experts believe that an incentive-based scrapping policy would drive demand for new vehicles.

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