Automobile Manufacturers Rejoice! Supreme Court Lifts Ban On Registration Of Vehicles Over 2000cc

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."