Nitin Gadkari asks Delhi government to withdraw 'green tax' on vehicles

Union Road and Transport Minister Nitin Gadkari

Union Road Transport and Highways Minister Nitin Gadkari on Wednesday urged the Delhi government to withdraw the green tax imposed on commercial and older petrol vehicles, saying it is adding to the financial burden on people.

The green tax, introduced following a Supreme Court directive to tackle air pollution in the national capital, applies to commercial vehicles and older petrol vehicles entering Delhi.

Speaking at an India Today event, Gadkari said, “I request the Chief Minister of Delhi to stop it immediately.” He suggested that instead of continuing the levy, the Delhi government should compensate the civic body through budgetary support. He proposed that the state provide an annual grant of Rs 700 to 800 crore to the corporation and shut this revenue stream.

Nitin Gadkari also said his ministry has asked its advocates to intervene in the matter before the Supreme Court to seek reconsideration of the original order, with the aim of easing the financial burden on vehicle owners.

Under the Environment Compensation Charge (ECC), large trucks are required to pay Rs 1,300 per entry into Delhi, while smaller commercial vehicles are charged Rs 700 per entry. The top court had introduced the charge to discourage trucks that are merely transiting through Delhi from entering the city, as part of measures to curb air pollution.

The Municipal Corporation of Delhi collects the ECC without deductions and transfers the funds to the Delhi government every Friday. The Supreme Court has directed the Delhi government to utilise the funds for road improvements, especially for cyclists and pedestrians, and to regularly inform the court about how the money is being spent.