Green Tax on Vehicles: Environment or Pollution Tax levied on Your Car, Bike & other Vehicles
Green tax also known as environment or pollution tax is imposed on older vehicles that may be contributing to environmental pollution. The Ministry of Road Transport and Highways has levied Green Tax on commercial vehicles that are more than 8 years old and on personal vehicles that have been used for over 15 years.
Green tax has been introduced to keep a tab on constantly growing levels of pollution in various states. Learn more about the Environment or Pollution Tax levied on Your Car, Bike & other Vehicles.
What is Green Tax?
Green Tax is imposed on older vehicles in the country as these vehicles cause environment pollution due to emissions from their old engine. The vehicle owners are hence liable to pay a specific tax amount for their old vehicle as “Green tax”. This tax is imposed on both commercial and personal vehicles. The exact amount levied as green tax can vary from one state to another and also depends on the type of vehicle.
Old vehicles that emit gases or smoke impact the environment severely and cause pollution to a great extent. Heavy vehicles carrying goods from one place to another also increase the smoke levels in the air. Hence, it becomes important to limit the usage of the older vehicle for which the Government of India has introduced Green tax in the country. Higher green tax will be charged for vehicles that are registered in highly polluted cities such as Delhi.
Green tax is imposed only on petrol and diesel vehicles to protect the environment from pollution. Electric vehicles and/or vehicles running on CNG or ethanol are exempted from Green tax. The revenue collected from the green tax will be used by the government to set up facilities that can monitor the emissions. Green tax should inspire the citizens of the country to switch to less polluting vehicles.
Green Tax on Vehicle in India
Commercial vehicles that are more than 8 years old are supposed to pay the ‘Green tax’ at the time of renewal of fitness certificate. They will be charged at the rate of 10 to 25% of the road tax. Personal vehicles have to pay green tax at the time of renewal of registration certification after 15 years. The green tax in this case can be up to 50% of the road tax, especially in polluted cities. The green tax thus varies from one state to another. The table below shows the green tax imposed in most of the states in the country for different vehicles:
| Vehicle Category | Green Tax Applicable |
|---|---|
| Two-wheelers | Rs 2000 |
| Diesel vehicles | Rs 3500 |
| Petrol vehicles | Rs 3000 |
| Autorickshaws | Rs 750 |
| Light good vehicles | Rs 2500 |
| Six-seater taxis | Rs 1250 |
| Vehicles having more than 7500 kg capacity | 10% of annual tax |
| Service vehicles | 2.5% of annual tax |
| Contract buses | 2.5% of annual tax |
| Tourist buses | 2.5% of annual tax |
How to Pay Green Tax Online?
Green tax has been levied by the Government on older vehicles running on roads in the country. Vehicle owners who are required to pay green tax for their vehicles can pay it online from the Vahan portal authorized by the Ministry of Road Transport & Highways. To submit the green tax online, follow the below-mentioned steps:
Step 1: Open the Vahan portal
Step 2: Enter the vehicle registration number to avail “Pay your tax” service
Step 3: Click on the proceed button
Step 4: Select “Pay your tax” from the drop-down menu
Step 5: Enter your mobile number and generate OTP
Step 6: Submit the OTP sent on the number
Step 7: Press the “Show details” tab
Step 8: Next, choose the tax mode
Step 9: Press the Payment tab and submit the payment online
Step 10: Confirm the payment and select the payment gateway
Step 11: On successful payment, a message box will appear
Benefits of Green Tax
Green tax has been imposed by the government primarily to reduce the pollution levels in the environment. The aim behind introducing the green tax is to motivate citizens to switch to new vehicles and make them aware of how the emissions from old vehicles severely impact the environment. The revenue collected as the Green tax will be used by the Government to monitor pollution levels and new facilities will be set up to keep a check on the same.