The government plans to propose a 40% green tax on luxurious vehicles. Import of vehicle has been identified as one of the highest contributors to the Indian Rupee shortage in the country and to the balance of payments with India which has been worsening.
Green tax, which will be levied in addition to the existing taxes, will be discussed while deliberating the Tax Revision Bill 2012. A green tax of 40% has been considered as one of the short term measures in controlling the imports of luxurious vehicles such as those with engine capacities of 1,800 cubic centimeters and above.
Green tax on public transport like buses, pick-up, utility vehicles and trucks will not be levied according to the proposal. But, there is a proposal to levy a 5% green tax on petrol, diesel, lubricants, kerosene and LPG. Refrigerator, freezer and air conditioner are expected to be levied a 10% green tax.
