July 5, 2016
In light of the current conundrum regarding diesel vehicles, the Environment Pollution (Prevention and Control) Authority (EPCA) has released a detailed report with recommendations on an appropriate cess on the cost of such vehicles. The report recommends a cess of 20% on the cost of vehicles with less than 1500 cc engines and 22% on vehicles with engine capacity of over 1500 cc. We bring you the note here:
In December 2015, the Supreme Court banned the registration of diesel-run SUVs and high-end cars with engine capacity of 2000CC and above in Delhi and NCR. The ban was initially instituted for a period of three months and was subsequently extended with no deadline. Auto manufacturers and the Government have argued in the Supreme Court for these vehicles to be allowed again, subject to a payment of one per cent of the vehicle’s ex-showroom price as cess.
The central theme of the EPCA report was to control air pollution by making diesel vehicles cost prohibitive. The argument for a one per cent cess therefore goes against the very grain of this reasoning.
For more on our work related to air pollution, please contact Hemanth Subramanian, CSE Media Resource Centre; firstname.lastname@example.org; +919836748585
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