Explanation:

Union Transport Minister Nitin Gadkari has recently announced his Ministry’s approval of a ‘green tax’ on vehicles of specified vintage, as a means of dissuading people from using polluting vehicles.

Key highlights of the policy

• At the time of fitness certification renewal, an additional green tax of 10%-25% on the road tax payable will be collected from commercial transport vehicles that are older than eight years.
• For personal vehicles the green tax will be collected after 15 years.
• The policy provides exemptions for tractors, harvesters and tillers used in farms, hybrid, electric, ethanol, liquefied petroleum gas (LPG) and compressed natural gas (CNG)-powered vehicles.
• It also provides a lower green tax for public transport vehicles such as buses.

Conversely, a higher additional 50% of road tax is proposed for vehicles in highly polluted cities, as well as differential tax based on fuel and vehicle type, such as diesel.

• Vehicles of government departments and public sector units that are older than 15 years are to be deregistered and scrapped.
• Green tax funds are to be kept in a separate account to help States measure pollution and tackle it.
• State governments must now comment on the proposal.
• The policy is scheduled to come into force on April 1, 2022.

Hence option 3rd is correct.