India may impose 25% environmental tax on diesel-fueled cars
The Supreme Court of India has sought to impose a 25% prohibitive tax on diesel-fueled cars to compensate the environmental damage caused by the vehicles.
A bench headed by Justice Aftab Alam issued a notice while hearing a plea seeking the imposition of an environmental compensation charge that can potentially drive up prices of diesel fuel cars and subsequently drive down demand.
The bench also received appeals requesting for direct collection of compensation charges of about 4% on existing vehicles and 2% on petrol-fueled vehicles.
The Central Pollution Control Board will support the bench as it keen to promote the report by the Environment Pollution Control Authority, recommending complete ban on the use of diesel in personal transport vehicles in Delhi.
"The Centre for Science and Environment supports the initiative to restrain diesel cars by imposing strict fiscal measures to reduce toxicity of air," said the agency
Expressing the opposition to such move Society of Indian Automobile Manufacturers vice president Vikram Kirloskar highlighted that currently 45% of the price tag on any vehicle consisted of tax, and therefore additional levies were unwelcome.