In view of the increasing pollution levels and deteriorating air quality (AQI) in Delhi, the government is now moving towards taking strict steps. Plans are being made to increase the scope of ‘Green Cess’ with an aim to control pollution and promote electric vehicles (EVs) in the national capital. Under this new proposal, now additional tax may have to be paid on the purchase of not only diesel but also petrol and CNG vehicles. The government believes that this will not only help in reducing pollution but will also increase the acceptance of electric vehicles. However, in the era of inflation, there is confusion and mixed reactions among the public regarding the rising cost of purchasing a vehicle.
Preparation to impose 1-2% tax on petrol and CNG vehicles, rule may be implemented under new EV policy by March 2026
According to the proposed plan, the idea is to increase the 1% green cess which was imposed on diesel vehicles in Delhi till now, to 2%. Along with this, it has also been proposed to impose a new tax of 1-2% on vehicles running on petrol and CNG. The move could be part of Delhi’s new electric vehicle policy, which is likely to be implemented by March 2026. This will have a direct impact on the common man’s pocket, as it will increase the ‘on-road’ price of new vehicles. The government’s argument is that by making conventional fuel vehicles expensive, people will be attracted towards electric vehicles.
Heavy duty will have to be paid at the time of PUC for 10 year old vehicles, target is to raise Rs 300 crore annually
Not only new vehicles, but strict action will be taken against the owners of old vehicles as well. According to the proposal, vehicles older than 10 years will have to pay extra in the form of ‘green cess’ while renewing the pollution control certificate (PUC). This amount can range from Rs 2,000 to Rs 10,000. The administration estimates that this step will generate revenue of about Rs 300 crore annually. For this model, the system of states like Uttarakhand has been studied, where the possibility of reduction through Fastag is being explored.
Public support in the name of reducing pollution, but there was also resentment among people due to inflation and rising costs.
Public opinion is divided on this issue. Recent surveys and conversations with people have revealed that about 30-40% people are supporting this cess to reduce pollution. He believes that tough decisions are necessary to clean the air of Delhi. At the same time, a large section is angry with rising inflation and rising vehicle prices. 66% of those surveyed have questioned the government’s ability to control pollution (such as implementing GRAP), but they consider green cess a necessary evil. On social media and in general discussions, people are also saying that the cess will also affect the vehicles that transport essential goods, due to which other goods may also become expensive.
Questions raised on the use of Rs 999 crore recovered so far, in future the money will be spent on EV charging and road safety.
Along with the application of green cess, the biggest question is arising regarding its proper use. According to data, the Delhi government has so far collected Rs 999 crore as green cess from trucks, but there is a lack of transparency regarding its effective use. The administration claims that the new revenue will be solely used to control pollution, build charging stations for electric vehicles and improve road safety. Since dust causes 58% of PM-10 pollution in Delhi-NCR, the fund will also be used for measures like planting grass and bushes on roadsides to prevent dust from flying.
Opposition parties called it an additional burden on the public, demanding transparent use of funds and accurate AQI data.
Political reactions are also emerging on this proposal. Opposition parties and critics say that instead of paying attention to the real problem of pollution, the government is putting the tax burden on the public. People are demanding that the government should first provide accurate AQI data and implement the Graded Response Action Plan (GRAP) on time. The public wants every penny collected as green cess to be accounted for in a transparent manner, to ensure that the money is actually being spent on improving the environment and not just to fill the government coffers.
