Big, polluting cars to cost more under new National Auto Policy

Bigger cars which lead to more pollution and take more space will be costlier in days to come.

Published: 24th February 2018 02:19 AM  |   Last Updated: 24th February 2018 07:55 AM   |  A+A-

Image used for representational purpose. (File | AP)

Express News Service

NEW DELHI: Bigger cars which lead to more pollution and take more space will be costlier in days to come. To promote use of smaller cars with lesser carbon emission, the government has proposed a new National Auto Policy that will introduce a composite length and emissions-based criterion for vehicle taxation.

A car measuring more than four meters in length with emission levels above the given standard will attract an additional cess of 27 per cent. Length-based classification will target reduction in vehicular congestion and CO2 emissions-based classification is aimed at reducing pollution.In the proposed taxation framework, base GST rate for passenger cars will continue to be 28 per cent  and GST cess will depend on vehicle length and CO2 emissions. It says that cess rates on vehicle categories are arrived at with the goal of promoting smaller and greener vehicle while minimising the impact of changing the classification and rates on total GST revenue.

The values used for creating slabs (4m and 155 g/km) and the cess rates will be reviewed and changed in order to meet the evolving environmental targets and changing market landscape. The emission slab will be reviewed every two years with the target of 110g/km by the year 2028.

The draft policy guidelines include rollout a comprehensive 10-year roadmap that will define the emission standards with a target of harmonizing with the most stringent global standards by 2028, across all vehicle segments. This roadmap will in turn enable the industry and support agencies to define the requirement of technologies, testing facilities, skill development and plan long-term investments.  

The National Auto Policy prescribes other policy guidelines related to the industry and common people which include boost of the industry and employment generation through skill development. “Effective implementation of these policies will require co-ordination across different ministries, government bodies,” officials said.Suggestions have been invited by the ministry of heavy industries on the draft auto policy.

A car measuring more than 4 meters in length with emission levels above the given standard will attract an additional cess of 27 per cent. Length-based classification will target reduction in vehicular congestion.

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