Context:
-
The Centre has planned a policy to raise road tax on vehicles of a certain age from April 1 next year.
-
This has the potential to renew a big part of India’s vehicles on the road, raising fuel efficiency, and improving safety standards.
Proposal:
-
Commercial transport vehicles will have to pay 10%-25% extra on road tax after 8 years while renewing the fitness certificate. While for personal vehicles it will be implemented after 15 years.
-
Public transports are given concessions.
-
While hybrids, electrics, and farm vehicles have been exempted.
-
Higher tax on diesel engines and in most polluted cities is also proposed.
What is needed to make this a success?
-
Additional tax should be greater than the resale value of old vehicle to ensure that it is discarded.
-
Safe disposal and recycling.
-
Discount to marginal operators like auto-rickshaw drivers as was done in 2009 in JNNRUM scheme for buses.
-
Recovery of steel, Aluminium and plastic and recycling it.
-
Organising scrap collection and recycling industry.
-
Updating vehicle registration databases for all states to show actual numbers of old vehicles.