Stressing on the need to stop growing use of low-taxed diesel (meant for farmers and freight) in cars that have cleaner substitutes, Environment Pollution Control Authority (EPCA) said diesel car users cannot pay less tax per litre of fuel compared to petrol car and two-wheeler users and this needs to be equalised.
“This is needed to reduce public health risk. Only cleaner fuels like CNG, lPG, electric and hybrid can have incentive to protect public health,” EPCA said in its report.
It added that the total excise and VAT difference between the two fuels is Rs 9.94 per litre under the current fuel taxation and the retail price difference is Rs 10.46 per litre. “This encourages use of low tax and polluting diesel fuel in cars,” EPCA added. The report has recommended a cess of 20 per cent on the cost of vehicles with less than 1500 cc engines and 22 per cent on vehicles with engine capacity of over 1500 cc.