About 50,000 truckers, most of whom are single-truck owners, could be thrown off their businesses due to the recent fuel price hike. “Already the vehicle supply on the road is higher than the requirement. With the fuel price hike, fleet owners will look to cut down fleet size wherever needed and due to this, small single-truck owners could be at the receiving end,” Ashok Goyal, managing director at BLR Logistiks (I) Ltd told Business Standard. The company has a fleet of 500 vehicles of all types small, medium and large with pan-India presence. Meanwhile, pan-India commercial vehicles on the road are about eight lakhs.
Green tax may push up truck rentals, hit used heavy vehicle prices
Transport vehicles older than eight years could be charged green cess at the time of renewal of fitness certificate
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The imposition of green tax on certain categories of vehicles by the ministry of road transport and highways (MoRTH) could push up truck rentals as their owners will likely pass on the additional cess to customers.
To be calculated on road cess, the green tax is being imposed to ‘dissuade people from using old vehicles’ as well as motivate people to switch to newer and less polluting vehicles, the government has said.