Government May Soon Levy Green Tax On Bike & Scooters

A tax of Rs 800 to Rs 1000 may be imposed on conventional two-wheelers  

• The green cess accumulated from conventional two-wheelers will be used to promote the development and production of electric two-wheelers.
• Currently, the price difference between the former and the latter is around Rs 10,000 to Rs 50,000, depending on the model. 
• Government plans to have 1 million electric scooters and bikes on Indian roads in the next 2-3 years

With the deadline of Anti Lock Braking System (ABS) or Combined Braking System (CBS) becoming mandatory looming large, and the new five-year insurance policy in place, two-wheelers have recently seen a hike in prices. Just when the dust was about to settle, recent revelations suggest that the government may impose a green cess on conventional scooters and bikes. Essentially, you’d have to shell out Rs 800 to Rs 1000 more over the ex-showroom price of an ICE (internal combustion engine)-powered two-wheeler.

There’s a substantial price gap between ICE-powered two-wheelers and electric ones. As a result, around 20 million units of the former were sold last year alone, while sales of electric-powered vehicles was miniscule in comparison. To reduce this gap, the government intends to subsidise and promote the development and production of e-scooters and bikes via the amassed green tax.

At present, major components like batteries, electric motors, controllers and power units used in an electric vehicle are still imported into India. In order to counter this, the government is aiming at localising these parts, which will reduce costs substantially. Not only will this push the Indian two-wheeler industry to manufacture more electric two-wheelers, it will also be in line with the government's initiative to curb greenhouse emissions by 2030. This will also fuel the government's ultimate goal of having one million electric scooters and bikes on Indian roads in the next 2-3 years. 

While this may seem like a bummer for two-wheeler enthusiasts, the fact of the matter remains, the industry is moving towards electric vehicles and it’s about time we adapt. Plus, considering the current pollution levels in India, it’s high time we take counteractive measures to prevent it. The government’s vision of going electric seems to be in the right direction and if we work towards it, we could hope for a greener, better tomorrow. 

Source: ET Auto