Indian Government levies a green tax on old vehicles. Commercial vehicles older than eight years and passenger cars over 15 years come under this environmental tax.
If your car (or other vehicles) falls under the stipulated regulations, paying a green tax, like the road tax or car insurance renewal, is mandatory. You can pay environmental tax online.
India, along with other major countries worldwide, is trying to bring vehicular emissions under control. Automotive vehicles are a major contributor to carbon emissions, creating significant environmental pollution and causing severe health hazards. A green taxation policy is part of the Indian government's steps to sensitise people towards ecological issues and discourage anti-environment behaviour.
What is Green Tax in India?
The green tax, also called environmental tax, covers commercial and personal vehicles using diesel or petrol as fuel. It is primarily aimed at older vehicles that emit higher pollutants. In other words, while car insurance protects the car owner from the financial liabilities of damages, the green tax protects the environment from hazardous pollutants.
How much is the Green Tax for Old Vehicles?
Vehicular taxation in India is a state subject. Therefore, like the road tax, the quantum of green tax varies across states. It is best to check with the local motor vehicles department to understand the applicable environmental tax for the different categories of vehicles - commercial and private.
The guidelines of the green taxation policy specify that commercial vehicles over eight years old will have to pay the tax at the time of fitness certificate renewal. Similarly, personal vehicles older than 15 years must pay green tax while renewing their registration certificate. The tax amount is around 10% to 15% of the overall road tax liability for commercial vehicles. The tax may vary according to the engine type and the seating capacity of the vehicle. For private cars, the amount may go up to almost 50% of the road tax liability.
States may also decide on a higher environmental tax rate depending on the pollution level in a particular Regional Transport Office (RTO) zone.
How to pay Green Tax Online
The first step to paying green tax online is to log in to the mParivahan app. Launched by the Ministry of Road Transport and Highways, the mParivahan app has made it easy for vehicle owners to pay their transport-related taxes and fees, including green tax, if applicable. The digital initiative mParivahan now connects over 1300 RTOs across the country.
How to check the Green Tax of Vehicles?
You can obtain all necessary information on rules and taxation related to motor vehicles of a particular state from any RTO located in the state concerned. You can find out the specific criteria and the tax rate for environmental tax. However, when you log in to the mParivahan app to pay, the appropriate tax is automatically calculated based on the registration details of your vehicle.
Like the road tax or the car insurance renewal, paying green tax is a mandatory requirement under the Motor Vehicles Act in India. A compliance failure may lead to penalty and/or prosecution.
Does Green taxation help India?
The environmental tax is levied with three primary objectives - to discourage pollution-causing actions like using an old vehicle, to fund environmental initiatives with the tax collected, and higher levies/duties on vehicles using legacy fuels will encourage faster development of alternatives. For example, punitive taxes on conventional vehicles have led to a global focus on electric vehicles, resulting in quicker growth. Similarly, most insurance providers have stringent car insurance norms for cars over 15 years.
Vehicular pollution is a significant worry across the globe, and the green tax is a government initiative to protect our environment from hazardous pollutants. It aims to curb environmental pollution. The green tax discourages people from using old vehicles.
Commercial vehicles registered more than eight years ago and private vehicles over 15 years old, using fossil fuels like diesel and petrol, are mandated to pay the environmental tax. The timing of green tax payments is different for commercial and private vehicles.
The tax varies according to the engine and seating capacity of the vehicle. The green tax rates are different in different states and broadly vary between 10% and 12% of the road tax for commercial vehicles and up to 50% in the case of private cars. However, you can obtain accurate information on green tax rates by visiting the RTO office in your area.
Paying the green tax is as simple as your car insurance renewal - you only have to log in to the mParivahan app. Notably, green tax is mandatory in India, like your car insurance or road tax payment. So, ensure that you pay this tax on time and avoid paying penalties.
