New Delhi, March 2

Government’s plan to levy an additional tax of four per cent on large cars will apply irrespective of the fuel used, the country’s auto industry body said today.

In his annual union budget announced on Monday, Finance Minister Arun Jaitley imposed a ‘green’ tax on passenger vehicles, effective immediately, aimed at helping fight high levels of air pollution and congestion.

The budget document, however, did not specify if the highest tax of four per cent would be applicable on vehicles running on a specific fuel or all transportation fuels.

Industry lobby Society of Indian Automobile Manufacturers (SIAM) said today higher tax would apply to all cars and sport-utility vehicles longer than four metres in length and with engine capacity of more than 1200cc for petrol cars and higher than 1500cc for diesel.

The new tax has come as a ‘rude surprise’ for the auto industry, said Sugato Sen, deputy director general at SIAM.