Toyota Innova Crysta

Delhi Diesel Ban Lifted; 1% Tax Now Applicable

The Supreme Court has lifted the diesel ban in Delhi. Manufacturers now have to 1% Environmental cess

The move came after many manufacturers claimed that it was unfair on the part of the government to ban the sale of diesel vehicles with engine capacity more than 2.0-litres in the Delhi NCR region. The ban affected in many companies losing out in total sales. Some like Mahindra downsized their engine to continue to sell their vehicles in Delhi. Others like Mercedes-Benz were planning to launch petrol engined cars to overcome the ban.

2016 Jaguar XF front
The move affected luxury car makers the most, taking away majority of their sales

Car makers like Mercedes-Benz and Toyota appealed to the Supreme Court against the ban. They even agreed to pay 1% of the car’s ex-showroom price as an environmental cess fees. The amount will be deposited to a new account opened by┬áthe Central Pollution Control Board in a PSU bank.

“Let the environment protection charge of 1% come. Pollution is now under control,” an SC bench comprising Chief Justice TS Thakur and Justices AK Sikri and R Banumathi said in their order on Friday.

The Supreme Court said that the 1% green tax is temporary and could be increased, decreased or even completely removed at a later stage. There are also chances of it being levied on cars with diesel engines less than 2,000cc.

Mahindra Scorpio front right
Mahindra put a 1.99-litre diesel engine into the Scorpio and XUV500 to be able to sell it in Delhi

This is good news for many auto manufacturers selling diesel engine cars in India. Now that the diesel ban has been lifted, they can sell cars with more than 2,000cc engine capacity in all parts of the country. RTOs in the NCR region will now start registering diesel cars with engines more than 2,000cc.


Source – Economic Times Auto

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