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Cash-strapped transporters seek interim relief from green tax

The Delhi government officials, however, stated that the green tax was imposed by the Apex Court and the state government did not have the power to overrule the decision

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Hit hard by currency crunch, traders and transporters are demanding an interim relief from the Environment Compensation Charge (ECC), or green tax, levied on vehicles before entering Delhi. Trader associations claim this temporary relief will ensure uninterrupted transportation of essential goods, while preventing possible inflation.

The Delhi government officials, however, stated that the green tax was imposed by the Apex Court and the state government did not have the power to overrule the decision.

"Given the shortage of currency in the nation, any interim relief to transporters will help ensure smooth flow of goods to the national Capital. Since the Centre has also already made crossing all toll nakas free till November 18, we request the Delhi government to also intervene in the matter or appeal to the Apex Court," said Rajender Kapoor, President of the Delhi Goods Transport Organisation.

A Delhi government official, however, said: "Since the tax was ordered by the court, we can't give any interim relief to transporters. If the problem persists, the government will probably take some action."

Taking cognizance of the deteriorating environmental conditions and rising level of pollution in the city, the Supreme Court had decided to levy green tax on transporters on October 12 last year, which was to be collected for four months starting November 1.

Originally, the Supreme Court had fixed the green tax for light commercial vehicles with two axles, loaded with goods at R700, and commercial vehicles with three and four axles, loaded with goods at R1300. The tax was doubled at R1,400 and R2,600 to further deter the non-Delhi-bound vehicles from entering the Capital.

Besides, the Supreme Court had asked the Municipal Corporation to collect the tax, as it already had a similar set-up in place. The South Delhi Municipal Corporation is the nodal authority for collecting tax from goods vehicles entering the city. Earlier this year, the civic body had signed a contract with a private firm for the same.

"The present situation requires immediate attention of the State and the Central governments. They should make special arrangements to ensure smooth flow of essential goods," said Praveen Khandelwal, National Secretary General of the Confederation of All India Traders.

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