Car Sales Tax In India To Reduce Pollution

Co2 emissions in the UK as most of the western world has become the main taxation point, for running costs. The Road Fund Licence is primarily charged on the Co2 emissions of the vehicle in question, with very low emission vehicles being totally free and large engines, making up for the shortfall with high rates over £500 a year in 2016.

taxation to reduce car emissions in India

India is now deciding to tax new sales to help fight the extreme pollution it face through their nation. There has been extreme co2 level for some time within the major cities, but now as more and more families are buying cars, the problem is getting even worse at a time where the world has made commitments to lower output.

Variable Taxation Points

Taxation points will start at 1% rising to 4% on larger diesel engines, it is believed that levels of dangerous particles can be over 15 times the safe limits in some cities such as Delhi. Tens of millions of children could be affected medically by these extreme levels.

What is not clear is how this newly raised capital will be spent and what measures will be put in place to reduce emissions, or whether it is in purely in place to slow down the amount of new models hitting India's roads.

Of course industry pollution is still a major factor, with many factories still throwing dangerous particles into the air.

Further Reading Guardian India Introduces Car Tax