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Lighthouse - September, 2021.

INDIAN LOGISTICS INDUSTRY ADOPTS ELECTRONIC VEHICLES, AND THE IMPACT OF GREEN TAX

Despite the global pandemic, the logistics industry has witnessed exponential growth in the last few years. The industry has been incorporating new trends and technological innovations to stay on top of the game.

Logistics Industry Ushers in Electronic Vehicles
The logistics sector has played a crucial role in ushering in the Electronic Vehicles revolution in India. A giant leap for every industry, the logistics industry is driving this significant change for the entire nation. As we work towards sustainable growth, it is important to incorporate environmentally friendly techniques. India joining the World Logistics Passport has spurred the development of the national logistics sector.

Green Tax and the Logistics Sector
Implementing the ‘Green Tax’ by the Indian Government will have a big impact on the logistics sector. Mr. Nitin Gadkari, Union Minister of Road Transports and Highways, announced the imposition of Green Tax on older vehicles to aid sustainable best practices. The scheme expects vehicles to pay 50% of the road tax and applicable for petrol and diesel vehicles.
According to the ministry, transport vehicles older than eight years could mainly fall under the Green Tax radar (at 10-25 % of road tax) right after they receive a renewal of a vehicle fitness certificate. From September onwards, vehicles older than 15 years will be owned by government departments and public sector undertakings.

Working in tandem with the Indian Government
The logistics industry in India will work hand-in-hand with the Government to create a more sustainable future. The Green Tax law comes as a push for the entire sector to have an eco-friendly growth model. With the EV revolution taking place, it should be easy for the sector to adapt to this law to bring the necessary changes All the logistics solution providers already have a plan post imposition and have been working on the same. It shouldn’t be difficult for the logistics sector to adapt to this change and move towards a green economy with new technologies

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