Green drive: High excise duty lane may be reserved for fuel-inefficient vehicles
TAX TO CONSIST OF 8% ADDITIONAL EXCISE FOR BELOW-90% EFFICIENCY OF AVERAGE, INCREASING TO 24% THE government is planning to impose higher taxes on manufacturers of personal vehicles with high emissions. The gas guzzler tax would be an additional 8% excise duty for vehicles at efficiency of below 90% of the average and would increase to a maximum of additional 24% duty as the fuel economy drops. The government hopes the calibrated excise duty structure would result in better compliance of fuel efficiency norms by car makers. Tax incentives for manufacturers with relatively low pollutant emissions and high fuel efficiency is also on the cards. The committee