Possess an old car? Pay more tax
The government may slap exorbitant road tax on old vehicles to take them off the road.
By Gunjan Pradhan Sinha, TNN |
NEW DELHI: Get ready to pay higher taxes on your old vehicles. The government may slap exorbitant road tax on old vehicles to take them off the road, a practice prevalent in the US and Spain.
It is also planning to make it mandatory for all vehicles older than four-five years to get a road worthiness certificates every year. An additional fee will have to be paid by the car owner for the mandatory inspection and certifications. The initiative is being made as a part of the Auto Mission Plan being prepared by the ministry of heavy industries for a 10-year period. The plan is likely to be announced this year.
The plan is proposed not only for metropolitan cities as in the past, but also for rural and semi-urban settlements. “The Central government is consulting state governments to over the proposal and has also asked for co-operation in this regard,” a senior government official told ET.
The proposed fleet modernisation plan will first be taken on a pilot basis in cities like Ahmedabad, Chandigarh, Hyderabad and Bangalore, according to sources.
A separate retirement plan for old vehicles including goods carriers is being considered where retro fit kits will be made available to rural folks for their old vehicles. However, all vehicles older than 15 years will be phased out, according to the official. Retro-fit kits are installed in old vehicles so as to limit emissions and are already being brought in use by a few states, he added.
These measures are primarily being taken so as to reduce emission levels all over India. “A large number of small cities have very high pollution levels exceeding even those of the metros,” a senior government official said.
Apart from this the plan also proposes that a four-year gap should be given between announcing new emission norms. Since India follows the Euro norms, companies must be given adequate notice before raising standards, the plan suggests.
The ministry of heavy industries had constituted a separate inter-ministerial group (IMG) on environment and safety standards for automobiles as a part of the drafting of the Auto Mission Plan.
The IMG has now given its comments suggesting the above measures as a means to remove old vehicles from the roads.
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