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Pay 1% Interim Green Cess to sell diesel cars – SC to Mercedes, Toyota

2016 Toyota Innova Crysta

The Supreme Court has indicated that the ban on sales of diesel cars and SUVs above the 2000cc engine capacity could be lifted.

The 7-month long ban on sale of diesel cars and SUVs with engine capacity above 2000cc could soon come to an end following a Supreme Court proposal to impose a 1% Interim Green Cess on sales of such cars.

Mercedes Benz along with Toyota, the two car brands who have been affected the most due to this ban, have told the court that they would comply with this regulation so that their sales would not be hampered.

2016 Toyota Innova Crysta

Mercedes-Benz diesel cars with engines above 2000cc and Toyota Innova Crysta (only available in 2.4l and 2.8l diesel engine option) have seen a significant fall in sales following the ban. According to the SC proposal, the companies will have to deposit 1% of the car’s retail value into an escrow account towards Green Cess.

The levying of green cess on diesel vehicles under the ‘polluter pays’ principal, has however raised the issue that the Court has no jurisdiction to impose such a tax which fell under the government’s domain while the court has no right to state that ‘diesel is the devil’.

2016 Mercedes Benz GLC Review

Mukul Rohatgi, Attorney General has also stated that such a green cess on diesel cars above 2000cc engine capacity is not according to the terms of Article 265 of the Constitution of India. No tax can be levied without legislation by authority of Parliament. The cess on diesel vehicles, which are considered more polluting than petrol engine vehicles, is one way of deterring sales, preserve the environment and ensure health of the general public with better and cleaner air.

The Attorney General has asked the court to give the Government 6 weeks time to conduct a study into the ill effects of diesel cars, emission and use of subsidized fuel and come to an amount that will be imposed on vehicle manufacturers.

About the author

Pearl Daniels

Pearl Daniels

Former freelance writer, Pearl Daniels is in the auto industry since 2011, having established herself as a widely read staff writer since 2013. Her keen eye for industry news, daily need to break down latest events, and quest to not miss a single launch detail, gives you the most refreshing morning news on weekdays.

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