What is Green Tax for Vehicles

Pollution is a rising issue in India with metropolitan cities like Delhi witnessing high levels of pollution throughout the year. Over the past few years, the pollution levels have gone up drastically, causing a lot of medical issues for people living in big towns and cities. The fumes emitted by vehicles are one of the main causes of pollution. In an effort to cut down and control pollution, the government has implemented a special tax system for vehicles called the ‘Green Tax’. Green tax is a type of excise duty that has been placed on any objects/vehicles that cause pollution.

Benefits of Green Tax in India in 2022 

Green tax was introduced by the government for vehicles in order to discourage people from driving older vehicles that emit a high amount of pollution. This would help in reducing the overall pollution levels in the environment. The tax revenue collected by the authorities would also be used in combating pollution levels by implementing clean technologies. In the long term, the green tax can help cut down a significant level of pollutants caused by vehicles. 

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How to Pay Green Tax Online 

Fortunately, the government of India has implemented an easy method for citizens to pay off their green taxes online. Vehicle owners can pay off their green tax through the official VAHAN website, by following the simple steps given below:

 

Step 1: Go to the Vahan website and log in using your credentials.

 

Step 2: Enter your vehicle registration information on the website.

 

Step 3: Click on the ‘Pay Your Tax’ option and enter your phone number. 

 

Step 4: Finish the OTP verification, and click on your appropriate tax option. 

 

Step 5: Pay your pending green tax through online payment methods.

 

Once your payment is successful, you will receive a message/notification that your green tax has been paid. 

Green Tax for Cars, Bikes and Other Vehicles in India 

The exact green tax that is applicable on vehicles may vary depending on the state that you live in. The rate of green tax may also depend on the level of pollution in your city. Let’s take a look at the green tax rate across a few states in India: 

Green Tax Rate, Maharashtra 

Vehicle Type 

Tax Amount 

Two wheelers 

₹2,000

Four wheelers (Diesel) 

₹3,500

Four wheelers (Petrol) 

₹2,000

Green Tax Rate Goa 

Vehicle Type 

Tax Amount 

Two wheelers 

₹1,100

Four wheelers 

₹1,760

Tamil Nadu Green Tax 

Vehicle Type 

Tax Amount 

Two wheelers 

₹500

Four wheelers 

₹1,000

Green Tax Rate for Commercial Vehicles 

The green tax rate for commercial vehicles is the same in most states, as given in the table below: 

Commercial Vehicle Type 

Green Tax Liability 

Six-seater taxis 

₹1,250

Service vehicles 

2.5% of annual tax 

Contract buses 

2.5% of annual tax 

Autorickshaws 

₹750

Vehicles with more than 7,500 kg capacity 

10% of annual tax 

Light good vehicles 

₹1,250

Tourist buses 

2.5% of annual tax 

FAQs on Green Tax in India

  • ✔️ Are there any vehicles who are not charged with green taxes?

     Electric-powered vehicles and CNG-based vehicles are exempt from paying green taxes. 

  • ✔️ Is the green tax the same everywhere?

    Different states in India have their own rates for green tax. Moreover, certain cities that are highly polluted may have higher green tax rates. 

  • ✔️ Can I skip paying green tax?

     If your vehicle falls under a category where green tax is applicable, then you will have to mandatorily pay the tax. If you do not pay your green tax on time, there may be legal consequences and fines. 

  • ✔️What are some other important documents I must carry when travelling?

     You will have to carry your driving licence and insurance policy papers while travelling. If you do not have insurance for your vehicle or if it has expired, you should buy a motor insurance policy as soon as possible. 

  • ✔️Can I buy a motor insurance policy online?

     Yes, you can buy a motor insurance policy online at Bajaj Markets and at other insurance websites.