Maharashtra Cabinet on Wednesday approved levying a 'green tax' on commercial vehicles that are more than seven years old and on non-commercial or private vehicles that are 15 years old.
The move is aimed at discouraging use of older vehicles and reduce pollution, an official said after the meeting.
As vehicles age, their engines become inefficient and pump out more emission that is environmentally harmful, he said.
A tax Bill would be introduced in the next session of legislature, the official said. There are over 1 crore (Rs 10 million) registered vehicles in the state, of which 80 per cent are two-wheelers, he said.
The tax will be similar to the green tax levied on vehicles by Karnataka, Andhra Pradesh and Himachal Pradesh.
In 2002, Karnataka introduced the tax by amending the Karnataka Motor Vehicles Taxation Act, 1957.
In 2008, Himachal Pradesh had also imposed a green tax on vehicle users in an effort to generate a fund to combat climate change.
