Government May Introduce 30% Green Tax on Diesel Vehicles Soon

With the hearing date fast approaching, according to an ETAuto report, the Environment Pollution Control Authority (EPCA) advised the introduction of a green tax of 30% on diesel vehicles.

As the government continues to work on such measures, the automobile industry unanimously states that the contribution of cars to pollution is quite small. However, with the ban on diesel vehicles with engine capacities bigger than 2000cc still in place, carmakers have resorted to introduction of relatively smaller capacity engines on their affected models. Mahindra and Mahindra launched an all-new 1.99-litre mHawk diesel engine for Delhi and NCR in January. Additionally, Tata Motors is also rumoured to be working on smaller capacity diesel engines. Interestingly, Toyota is taking a different approach to the ban and is allegedly working on petrol engines instead.