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Transporters' Strike Against Delhi Government's Environment Compensation Cess Hike

Union Minister Nitin Gadkari expressed hope on Tuesday that the issue of the Delhi government's decision to hike the environment compensation cess on commercial vehicles would be resolved soon after a discussion with Delhi Chief Minister Rekha Gupta.

The All India Motor Transport Congress (AIMTC), a transporters' body, has called for a three-day strike across Delhi and the surrounding national capital region beginning Thursday. The strike is aimed at seeking the rollback of the increased environment compensation cess on commercial vehicles and revoking the ban on those with BS IV or earlier-stage emission standards.

According to the AIMTC, the strike call is against the unjust and unfair policies imposed by the Commission for Air Quality Management (CAQM). Last month, the Delhi government increased the environment compensation cess (ECC) on commercial vehicles by over 50 per cent and decided to implement a 5 per cent annual fee hike.

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Current FeeNew FeeIncrease
Rs 1,400 (light commercial vehicles and two-axle trucks)Rs 2,00043%
Rs 2,600 (three-axle trucks and heavier vehicles)Rs 4,00054%

Effective April 19, the fee on light commercial vehicles and two-axle trucks has been increased from Rs 1,400 to Rs 2,000, while the charge for three-axle trucks and heavier vehicles has been raised to Rs 4,000 from Rs 2,600.

AIMTC claims to represent 95 lakh truckers and 26 lakh private bus, taxi, and maxi cab operators, as well as state-level transport unions across the country. It stated that these measures have caused serious socio-economic consequences, severely impacting the transport sector and livelihoods of operators.

The transporters' body alleged that the Commission for Air Quality Management and the Delhi government have indiscriminately imposed the ECC on all Delhi-bound goods vehicles, rather than charging only the transit vehicles in line with the Supreme Court's order. It pointed out that ECC is levied even on vehicles carrying essential items into Delhi, as well as on empty vehicles, which come to Delhi for loading.

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AIMTC also alleged that the proposed ban on the entry of BS IV commercial vehicles in Delhi lacks a scientific basis and legal rationale. The transporters' body demanded that BS-VI vehicles, those carrying essential commodities, as well as empty vehicles, be exempt from the ECC levy.

Citing news reports, AIMTC stated that of the Rs 1,753.2 crore of ECC collected till December 4, last year, the government spent only Rs 781.4 crore, while the remaining Rs 971.8 crore, 55.4 per cent, remained unused.

The proposed ban on BS-IV commercial vehicles from November 1, 2026, will severely impact the livelihood, financial stability, and sustenance of more than 17 lakh truckers and their families in Delhi-NCR.

Investor Takeaway

Transporters' strike may be resolved soon, potentially easing concerns for the auto and mobility sector.

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