TL;DR
Delhi plans a new green cess of 1-2% on new petrol and CNG vehicles to disincentivize ICE car purchases and fund EV adoption initiatives.
In a move to further promote electric vehicle adoption, the Delhi government is planning to introduce a green cess on new petrol and CNG vehicles, extending a levy currently applied to diesel cars. This proposal, part of a draft electric vehicle policy expected to be finalized by March 2026, aims to make conventional internal combustion engine (ICE) vehicles relatively more expensive.
Officials suggest a 1-2% tax on new petrol and CNG vehicles, with a potential increase for diesel vehicles from the existing 1% to 2%. This fiscal measure, alongside buyer incentives for EVs, seeks to discourage purchases of traditional vehicles. The generated revenue, estimated at around ₹300 crore annually, would be earmarked for initiatives to boost EV uptake.
