The petrol and CNG vehicles are likely to become expensive in Delhi as the government is set to levy 1-2 per cent green cess on these vehicles. For diesel vehicles, the current 1 per cent green cess could be increased to 2 per cent.
According to officials, this proposal is part of the draft EV policy, which is expected to be released in January. The policy will be finalised by March. The aim is to make EVs attractive by increasing the price of conventional fuel vehicles, thereby reducing pollution and increasing electric mobility.
What is Green Cess?
A green cess is an additional tax or fee levied by governments for environmental protection and pollution control. It is primarily aimed at reducing vehicular pollution. Proceeds from this cess are used to fund environmental improvements, such as charging infrastructure, clean transportation, or pollution control measures.
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Green cess differs from regular taxes in that it serves a specific environmental purpose. In polluted cities like Delhi, it's a crucial step toward increasing EV adoption and cleaning the air.
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Vehicular emissions are a major cause of Delhi's consistently deteriorating air quality. The proceeds from the green cess will be used to develop EV infrastructure, such as charging stations. This will increase the on-road price of petrol and CNG vehicles, while subsidies and other incentives for EVs will continue.
Pollution in Delhi
The EV policy has been under consideration for months and is set to be announced next year. The policy is much anticipated as pollution in Delhi is alarmingly high. Recently strictly curbs were announced with several provisions, including no fuel was provided to vehicles without a Pollution Under Control Certificate (PUCC). Although the curbs were lifted after air quality improved, the 'No PUC, No Fuel' Policy was extended.
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Delhi government minister Manjinder Singh Sirsa had said that PUCC will be mandatory for vehicles coming from outside Delhi for the next year.
He also stated that action against polluting vehicles will continue. He stated that vehicles below the BS-6 emission standard can now officially enter Delhi. The "No PUCC, No Fuel" rule will also be strictly enforced.