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As India intensifies efforts to combat vehicular pollution, the Green Tax has emerged as a pivotal measure to discourage the prolonged use of older, more polluting vehicles. This tax, levied during the renewal of a vehicle's Registration Certificate (RC), aims to promote the adoption of cleaner, more efficient vehicles.
The Green Tax is an environmental levy imposed on vehicles that have surpassed a certain age threshold, contributing significantly to pollution due to outdated emission standards. The revenue generated is earmarked for initiatives like establishing emission monitoring stations and enhancing public transportation infrastructure.
The Green Tax is applicable under the following conditions:
Cars and bikes that have been in use for over 15 years are subject to Green Tax during the renewal of their Registration Certificate (RC). This is mandated under pollution control guidelines to discourage prolonged use of outdated vehicles that do not comply with current emission norms. This regulation encourages vehicle owners to upgrade to cleaner, more fuel-efficient alternatives such as electric or CNG vehicles.
Vehicles older than 8 years are taxed during the renewal of their fitness certificate. These vehicles, due to heavier usage and higher emission rates, contribute significantly to urban pollution. The policy is designed to push fleet operators towards upgrading to eco-friendlier models or retrofitting with compliant engines.
Note: It's important to note that the exact applicability and rates can vary by state, and vehicle owners should consult their local Regional Transport Office (RTO) for specific details.
Green Tax rates differ across states, reflecting regional policies and pollution levels. Below are the current rates for select states:
Two-Wheelers: ₹2,000
Petrol Cars: ₹3,000
Diesel Cars: ₹3,500
Two-Wheelers: ₹1,100
Four-Wheelers: ₹1,760
Two-Wheelers: ₹500
Four-Wheelers: ₹1,000
Note: Applicable every 5 years after 15 years of vehicle registration.
Commercial vehicles have distinct tax rates, often calculated as a percentage of the annual road tax:
Autorickshaws: ₹750
Light Goods Vehicles: ₹2,500
Six-Seater Taxis: ₹1,250
Vehicles over 7,500 kg: 10% of annual tax
Buses (Service, Contract, Tourist): 2.5% of annual tax
Disclaimer: These rates are applicable during the renewal of the vehicle's fitness certificate after 8 years.
Certain vehicles are exempt from the Green Tax to encourage the use of environmentally friendly alternatives:
Fully electric vehicles are exempt from green tax across all states to promote clean mobility.
Most states waive green tax for CNG vehicles due to their low emissions profile.
In some states, hybrids are exempt.
Tractors and other farm equipment may be exempt in certain regions.
Disclaimer: Exemptions can vary by state; it's advisable to check with the local RTO.
The Ministry of Road Transport & Highways has streamlined the process for paying Green Tax through the VAHAN portal.
Visit the VAHAN portal on https://vahan.parivahan.gov.in/.
Log in with your credentials.
Enter your vehicle registration details.
Select 'Pay Your Tax' and input your mobile number.
Complete OTP verification.
Choose the appropriate tax option and proceed with payment.
Note: Not all states may have enabled online Green Tax payment. If unavailable, consult your state's RTO website for alternative payment methods.
The Green Tax serves multiple purposes:
One of the primary objectives of the green tax is to reduce environmental degradation caused by ageing vehicles. Older vehicles tend to emit higher levels of harmful gases due to outdated engine technology and wear and tear. By imposing a green tax, the government nudges vehicle owners to retire polluting vehicles and adopt cleaner alternatives, thereby helping curb emissions and support ecological sustainability.
The green tax also serves as a financial tool to generate revenue dedicated to environmental welfare. The funds collected are typically used for setting up air quality monitoring stations, implementing pollution control technologies, and improving urban transport infrastructure. This not only supports regulatory efforts but also ensures that polluters contribute toward the cost of environmental upkeep.
By discouraging the use of high-emission vehicles, the green tax helps lower the concentration of airborne pollutants in densely populated areas. Reduced emissions contribute to better air quality, which is directly linked to fewer respiratory and cardiovascular health issues. Ultimately, the policy promotes cleaner air and enhances the overall well-being of the population.
No. It applies to private vehicles over 15 years old and commercial vehicles over 8 years old, subject to state regulations.
Yes. Failure to pay the Green Tax can result in fines and legal consequences.
Yes. If online payment isn't available in your state, you can pay at the local RTO office.
Yes, green tax for RC renewal is commonly applicable when renewing the registration certificate of a private vehicle after 15 years or a commercial vehicle after 8 years.
No, the green tax for bikes is generally lower than the green tax for cars, with rates varying by state. Two-wheelers are usually charged less due to their lower emissions compared to four-wheelers.
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