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In what seems like a huge relief to both carmakers and prospective car buyers, the Supreme Court has decided to lift the ban on sale and registration of diesel vehicles (with engine capacities of 2000cc and above) in Delhi. On the flip side, the court has mentioned that an additional 1%  tax will be levied on sale of diesel vehicles.

Directed by NGT, the ban was initially effective till March this year. It was further extended, causing a major loss to carmakers as well as those planning to buy diesel cars in the national capital.

The aforementioned ‘green cess’ will be one per cent of the ex-showroom price of the diesel vehicle (2,000 cc and above). It will have to deposited to Central Pollution Control Board’s account. It remains to be seen how the procedure is simplified, and of course how the additional tax is used to reduce the pollution.