The Supreme Court has revoked a long-standing exemption for commercial vehicles transporting essential goods from paying the Environment Compensation Cess (ECC) when entering Delhi. This decision is expected to alleviate pollution levels and ease traffic congestion at the city’s borders. A three-judge bench, led by Chief Justice of India B.R. Gavai, issued the order, stating that the previous exemption for essential goods carriers created “genuine” difficulties. The court’s order, released on Tuesday, mandates that all commercial vehicles entering the capital must now uniformly pay the ECC.
Introduced in 2015, the ECC is a levy on commercial vehicles entering Delhi, designed to mitigate the city’s severe air pollution. This cess, recommended by the Environment Pollution (Prevention and Control) Authority, is collected alongside regular tolls. Its primary goals include discouraging polluting vehicles from entering Delhi and generating funds for public transport and pedestrian infrastructure improvements.
Previously, vehicles carrying essential items such as fruits, vegetables, milk, grains, eggs, salt, and poultry products, as well as empty or partially laden vehicles, were exempt from ECC. This exemption often led to physical verification processes at border checkpoints, resulting in lengthy vehicle queues.
The Municipal Corporation of Delhi (MCD) had approached the court with an application citing “operational challenges” in implementing the exemption. The MCD requested a uniform ECC levy on all commercial vehicles entering Delhi, arguing that the frequent stoppages for verification worsened air pollution at the borders and made the original exemption counterproductive.
The bench, which also included Justices K. Vinod Chandran and N.V. Anjaria, noted that the ECC is not excessively high and should not significantly impact the prices of essential commodities. The MCD’s calculations suggest the price increase per kilogram of essential commodities would range from ₹0.13 to ₹0.28.
However, ambulances, fire engines, and oil tankers will continue to be exempt from the ECC. MCD officials anticipate that the new order will not only improve traffic flow at border points and increase revenue for the environment fund but also facilitate the integration of Delhi’s toll collection system with the NHAI’s Fastag system. An official stated that by eliminating the need for physical checks, vehicle flow at border points will be streamlined.