The Supreme Court has lifted the ban which prohibits the sale and registration of diesel vehicles with engine capacity of 2000 CC and above in Delhi-NCR. The ban was imposed in December 2015 in an attempt to curb rising pollution levels in the city. This resulted in huge losses to manufacturers like Toyota and Mercedes-Benz, which forced them to re-consider their investments in the country.
Manufacturers also tried finding alternate ways like introducing petrol versions or with a smaller diesel engine, XUV 500 with 1.9 litre engine for example. Mercedes filed a plea to SC recently asking to lift the ban and willing to pay 1% environmental cess. Toyota nodded as well.
This prompted the apex court to lift the said ban and impose a 1% environmental cess. As a result, manufacturers selling diesel vehicles with engines larger than 2,000 cc will have to pay 1% tax on the ex-showroom price of each vehicle. This amount will be deposited in a separate bank account, opened by the Central Pollution Control Board in a PSU bank.
The charge may also be later extended to vehicles with under 2 litre diesel engines, the court said.
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