Green Tax & Scrappage Policy: Will It Help India Tackle Climate Change?

Transportation contributes to about 10% of India’s overall carbon emissions. In an attempt to reduce automobile pollution, the gov- ernment has come up with a Green Tax and Scrappage policy.

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Green Tax & Scrappage Policy: Will It Help India Tackle Climate Change?

In November 2021, Prime Minister Modi took the COP26 stage to pledge for a net zero India by 2070. Although the country’s per capita emissions are relatively low, India ranks third in gross carbon emissions. With CO2 emissions of 2.5 billion tons in 2016, India was only behind China and the US. Evidently, the need to prevent climate change is urgent.

Also Read: Vehicle Scrappage Policy Has The Potential To Make India Global Manufacturing Hub

Transportation contributes to about 10% of India’s overall carbon emissions. In an attempt to reduce automobile pollution, the gov- ernment has come up with a Green Tax and Scrappage policy. Under the new policy, driving older vehicles will now be costlier. Private vehicles older than 20 years and commercial vehicles old- er than 15 years would need a fitness certificate to continue being on the road. The owner must voluntarily scrap an automobile if it fails to get the fitness certificate. Additionally, the government plans to increase the re-registration fee for personal vehicles to up to 8 times and 20 times for commercial vehicles.

Moreover, once the older automobile is scrapped, the government would provide a discount of 4-6% for purchasing a new vehicle. Besides that, a road tax rebate of 25% for private vehicles and 15% for commercial vehicles is also proposed.

How Feasible are the Efforts?

Older vehicles are fuel inefficient and cause more pollution. They are bad for our oil import bills, and the government is adamant about getting rid of them. Moreover, the scrapping of older ve- hicles will also boost the country’s automobile sector. The gov- ernment claims to create 35,000 new job opportunities with the policy coming into effect.

But in a pandemic-hit economy, how right is it to put the burden of a new vehicle on the consumer? Besides that, whether or not the government is ready with adequate scrapping facilities to dis- card millions of vehicles remains a question.

Four out of the five most polluted cities are in India. We can not attain our climate, economic, and health goals until we get a hold of pollution in our country. Besides this, strict enforcement of pollution measures is today’s need of the hour.

Green Tax & Scrappage Policy: Will It Help India Tackle Climate Change?

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Green Tax & Scrappage Policy: Will It Help India Tackle Climate Change?
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Transportation contributes to about 10% of India’s overall carbon emissions. In an attempt to reduce automobile pollution, the gov- ernment has come up with a Green Tax and Scrappage policy.
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THE POLICY TIMES
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