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Tax relief in West Bengal for vehicles powered by green fuels

Move aimed at incentivising use of vehicles powered by environment-friendly fuels to reduce carbon footprint

Kinsuk Basu | Published 28.05.22, 07:44 AM
Several auto dealers said the waiver for electric car owners would be between Rs 15,000 and Rs 20,000 for three years.

Several auto dealers said the waiver for electric car owners would be between Rs 15,000 and Rs 20,000 for three years.

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The state transport department has issued a notification waiving the motor vehicles tax, additional tax and registration fees for all CNG and battery-powered two-wheelers and cars from April 1, 2022, to March 31, 2024.

Transport department officials said the move was aimed at incentivising use of vehicles powered by environment-friendly fuels to reduce carbon footprint.

A notification issued by transport secretary Rajesh Kumar Sinha on May 25 stated: “… the vehicles (two wheeled and four wheeled battery operated electric vehicles and all categories of CNG operated vehicles) which are registered on or after April 1, 2022 till the date of issuance of the notification may get extension of tax validity for the exact number of days for which tax has already been paid that falls within the period of April 1, 2022 to March 31, 2024. There will be no refund of the registration fee though.”

“This will encourage private and commercial vehicle operators to opt for electric and CNG-powered vehicles,” said Tito Saha, general secretary of the City Suburban Bus Services, which has recently introduced five CNG buses in New Town.

Several auto dealers said the waiver for electric car owners would be between Rs 15,000 and Rs 20,000 for three years.

The notification follows an announcement by the West Bengal government in March. Chandrima Bhattacharya, minister of state for finance, had proposed the waiver while presenting the state budget in the Assembly.

“The delay was because of certain formalities that had to be followed, including getting necessary approval from the finance department for issuing a formal notification announcing the state government's policy,” said a transport department official.

The notification is a reflection of the West Bengal government’s gradual shift towards green fuel, officials said.

“We can cut down air pollution caused by vehicle transmission by around 66 per cent if we switch from fossil fuels to alternative modes of energy,” transport minister Firhad Hakim said while introducing 10 electric buses on Wednesday.

Last updated on 28.05.22, 07:44 AM
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