Impose green cess on polluting vehicles to support EVs: SMEV

Electric vehicle makers' body SMEV Monday called for imposition of 'green cess' on polluting vehicles besides seeking putting of EVs in priority lending sector to accelerate creation of a robust ecosystem.

In its Budget wish list, the Society of Manufacturers of Electric Vehicles (SMEV) also asked the government for a dedicated allocation for 'clean air' campaign, which could be integrated under the Swachh Bharat Mission.

"We strongly advocate the imposition of a notional green cess on the polluting vehicles and use it to accelerate electric mobility," SMEV Director General Sohinder Gill said in a statement.

He further said funds generated from such a cess can help reduce burden on the government exchequer.

"This fund could be utilised in the frontloading of incentives to customers and bring electric two-wheelers prices down to the level of petrol two-wheelers," Gill said.

Calling for putting of electric vehicles (EVs) in the priority lending sector, he said it will help create a robust ecosystem for electric vehicles and give a boost to the commercial segment.

"In this way, customers who want to start commercial operations can get relief in procuring e-vehicles," Gill added.

SMEV also said a dedicated budget could be allocated for the 'Clean Air' campaign, which could be integrated under the Swachh Bharat Mission.

"The clean air campaign can create massive awareness on electric mobility and can influence the mind set of customers to adopt electric mobility to make India less polluting and its citizens healthier," Gill said.

He also said rationalisation of taxes could play a significant role in encouraging industries and customers to adopt e-mobility.

"The government can give relaxation from taxes for a specific period to those who go for green vehicles and contribute their bit to saving the environment," he added.