Capital increases green levy on commercial vehicles

In a move aimed at curbing pollution caused by transit vehicles passing through the Capital, commercial vehicles entering Delhi will have to cough up more money as the Municipal Corporation of Delhi (MCD) has enhanced the environment compensation charge (ECC) for such vehicles while mandating a 5 per cent annual increase to maintain its deterrent effect against pollution. The revised rates apply to 2XL, 3XL and 4XL vehicles.

ECC rates for Category 2 (light-duty vehicles) and Category 3 (2-axle trucks) vehicles have been increased from Rs 1,400 to Rs 2,000, while Category 4 (3-axle trucks) and Category 5 (4-axle trucks and above) vehicles will have to shell out Rs 4,000, instead of Rs 2,600 paid previously.

The decision was taken in compliance to the Supreme Court’s order, which has okayed enhancing the ECC. The revised charges are intended to discourage non-destined vehicles from using Delhi as a shortcut and push them to take the eastern and western peripheral expressways instead.

The increase in the ECC charges will have a considerable impact on businesses that transport goods, including hauliers, packers and movers, as operating costs will be increased. Approximately 3500 2-axle trucks enter Delhi each day, and approximately 1500 3- and 4-axle commercial vehicles enter Delhi each day.

In Delhi, the ECC is levied to compensate for the environmental damage caused by vehicular emissions. The MCD collects this charge at various toll plazas, and the proceeds are subsequently deposited into a dedicated account held by the Delhi Government.

These fees are used to offset the environmental damage from vehicle emissions. The money collected is deposited into a separate account run by the Delhi Government. On average, 70000 commercial vehicles enter Delhi from NCR each day.

On an average, 29000 cars, 6000 light commercial vehicles, 2800 buses, 3400-3500 trucks (two axles), 1000 three-axle commercial vehicles, 1100 commercial vehicles with more than three axles and nearly 25000 LMV enters the national capital on a daily basis.

The Supreme Court of India had approved a significant revision in the Environment Compensation Charge (ECC) levied on commercial vehicles entering Delhi, with effect from April 1, 2026. The Court passed the order on March 12, 2026, accepting the recommendations of the Commission for Air Quality Management (CAQM). The Court, after considering the CAQM’s proposal, stated that it found “the same to be reasonable, just, and fair” and accordingly approved the revised rates.

The Court further approved an annual enhancement of 5% in ECC rates with effect from April 1 each year, to be rounded off to the nearest ten rupees and notified by the Government of NCT of Delhi. The CAQM had justified this recommendation by noting that the revision was aimed at discouraging the “entry of diesel commercial vehicles into Delhi,” while “taking into account inflation, increases in vehicle operating costs, and annual increases in NHAI toll rates.” The Commission also noted an approximate 4.8% compounded annual increase in NHAI toll rates since 2018.