With the decision on diesel vehicle ban case in Delhi still pending, the Kerala government is now mulling a green tax to reduce pollution in the state.
Kerala government wants to protect the environment by imposing a 10 percent tax on renewal of registration of cars that are over 10 years old.
Reacting to the above news, RC Bhargava, Chairman, Maruti Suzuki says there seems to be some sort of knee-jerk reaction to impose taxes on auto industry. However, he does not think other states will follow suit.
With such kind of taxes, nobody may be willing to invest in the state, says Bhargava. He wonders if imposing green tax will really solve environmental problems.
Kerala government also wants to protect the environment by imposing a 20 percent tax on plastic glasses sold in God's own country.
These kind of taxes may keep manufacturers away from the state, which in turn could impact job creation and restrict manufacturing growth, he said.
For the entire interview, watch video
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