The Supreme Court-appointed green panel EPCA has recommended high pollution cess, of up to 25 per cent on the cost of diesel cars above 2,000 cc, multiple times higher than the figure suggested by few automakers.
The Environment Pollution (Prevention and Control) Authority (EPCA) reasoned that imposition of steep cess was imperative to control air pollution in the national capital by making diesel vehicles "cost prohibitive".
"The argument for a one per cent cess therefore goes against the very grain of this," EPCA said in a note to the apex court.
As per the note, the vehicles have to be divided into three categories -- up to 1,200 cc, up to 2,000 cc and 2,000 cc and above -- and an Environmental Compensation Cess of 10, 20 and 25 per cent respectively should be imposed on them.
"Diesel car users cannot pay less tax per litre of fuel compared to petrol car and two-wheeler users. This needs to be equalised to control growing use of low tax diesel fuel (meant for farmers and freight) in cars that have cleaner substitutes," it said.
Under the current fuel taxation, the total excise and VAT difference between the two fuels was Rs 9.94 per litre while the retail price difference was Rs 10.46 per litre. "This encourages use of low tax and polluting diesel fuel in cars."
The SC yesterday reserved its verdict on pleas seeking modification of its order banning registration of diesel-run SUVs and high-end cars with engine capacity of 2,000 cc and above in Delhi and NCR, indicating that such vehicles may be allowed to be registered again on payment of one per cent of ex-showroom price as green cess.
