Own an old vehicle? You might have to pay ‘Green Tax’

Taking a step towards green living, the Indian government has introduced the concept of ‘Green Tax’. The Ministry of Road Transport and Highways recently released a press-note with the details on the said tax.

According to the release, The Union Minister of Road Transport and Highway Nitin Gadkari approved the proposal to levy a ‘Green Tax’ on vehicles emitting high amounts of pollutants into the atmosphere. The following are few points to be noted regarding the ‘Green Tax’:

• Transport vehicles older than 8 years are to be charged Green Tax at the time of renewal of fitness certificate, at the rate of 10% to 25 % of road tax.
• Personal vehicles to be charged Green Tax at the time of renewal of Registration Certification after 15 years.
• City buses and other public transport vehicles will be charged with a lower Green Tax.
• Based on the fuel used (petrol/diesel) and the type of the vehicle, a differential tax will be applied.
• Vehicles like strong hybrids, electric vehicles, and alternate fuels like CNG, ethanol, LPG, etc along with vehicles used for farming will be exempted.

In addition, vehicles used by the government and PSUs, if older than 15 years, will be deregistered and categorised as scrap. This move is scheduled to be implemented from 1 April 2022. Stating a fact, the Ministry of Road Transport and Highways said that older vehicles are responsible for creating 10-15 times more pollution compared to modern vehicles.

With an intent to reduce pollution and create a cleaner atmosphere in the cities of India, the Ministry of Road Transport and Highways expects these taxes to create awareness among the citizens of India on responsible use of motor vehicles.