Old vehicle owners to pay this much as ‘Green tax’?

Do you own a vehicle older than 8 years in India? Chances are soon you have to shell out ‘Green tax’ to keep it. Of late, Road Transport and Highways Ministry gave its final nod to levy older vehicles’ tax. Before it is officially implemented, it will now be sent to the states for consultation. In most polluted cities like Delhi, the tax could go as high as 50% of the road tax. Talking about commercial vehicles older than eight years, the ‘Green tax’ would be levied at the time of renewal of fitness certificate at the rate of 10 to 25% of the road tax.

On the other hand, personal vehicles would be levied green tax at the time of renewal of registration certification after 15 years. Talking about public transport vehicles like city buses, they will be levied low charges. According to the ministry, a higher tax will be imposed for vehicles registered in highly polluted cities. In order to protect the environment and curb pollution, the policy will only apply for petrol and diesel vehicles. Vehicles like electric vehicles, strong hybrids and those operating on substitute fuels like CNG, ethanol and LPG will be exempted.

The ministry stated that Green tax’s revenue would be kept in a distinct account. It will be put to use to tackle pollution and establish state-of-the-art facilities for emission monitoring. As per the government, the Green tax aspires to discourage people from using vehicles that harm the environment and motivate them to switch to newer, less polluting vehicles.


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