Automakers in India faced difficulties selling vehicles that had diesel engines over 2000cc in Delhi, after the National Green Tribunal (NGT) banned vehicles.
Now, carmakers can relax a bit and see vehicles selling again since the Supreme Court (SC) has lifted the ban after carmakers agreed to pay 1 percent environment protection charge for every car registered in Delhi. The 1 percent tax is a temporary charge and may be enhanced later.
The 1 percent tax is levied on the ex-showroom value of the car, that excludes local levies and insurance cost of the vehicle. The move came after Mercedes-benz and Toyota, two of the biggest carmakers in India were affected badly by the diesel ban.
The Supreme Court Bench, consisting Chief Justice TS Thakur said, "Let the 1 percent environment protection charge come. Pollution is now under control."