Green Tax - Importance and Vehicles Covered

Green tax, which is also known as pollution tax or environmental tax, is a tax paid on all commodities that pollute the environment. Emissions taxes, it is hoped, will encourage enterprises and families to make improvements.

Green Tax Meaning

According to the most recent update, the Central Government has suggested charging a green fee on the renewal of personal car registration certificates after 15 years. The centre has also proposed a reduced green tax for commercial cars and a higher green tax for automobiles travelling in the country's most polluting cities.

Importance of Green Tax in India

The government imposed a green levy on vehicles to discourage people from using older vehicles that create a lot of pollution. This would contribute to lowering overall pollution levels in the environment. The tax revenue collected by the government would also be used to battle pollution levels through the use of clean technologies. Long term, the green tax can help reduce considerable levels of pollution created by vehicles.

Vehicles Covered Under Green Tax

When it comes to motor vehicles - both personal and commercial models must pay such taxes. Furthermore, in India, the green tax only applies to diesel and petrol cars or motorcycles. You are not required to pay such taxes if you own an electric or even a CNG vehicle.

The rules for green tax liabilities vary depending on whether the vehicle is personal or business. The following are the guidelines:

Commercial Vehicles - The green tax on vehicles is only applicable if the commercial automobile or two-wheeler is more than eight years old.

Personal Vehicles - If your bike or automobile is more than 15 years old, you must pay a vehicle green tax.

Consider that the green tax is typically charged as a proportion of the state's road tax. In addition, green tax for vehicles and bikes must be paid while renewing the vehicle's RC or registration certificate.

Simply expressed, the cash generated by the green tax on used automobiles would aid in the establishment of specialised pollution or emission monitoring stations. These stations would substantially contribute to the control of air pollution.

How to Pay Green Tax Online?

The government of India has made it easy for citizens to pay green tax payments. Vehicle owners can pay their green tax by visiting the official VAHAN website and following the simple steps outlined below:

Step 1: Log in to the Vahan website with your credentials.

Step 2: On the website, enter your vehicle registration information.

Step 3: Select 'Pay Your Tax' and input your phone number. 

Step 4: Complete the OTP verification and select the relevant tax option. 

Step 5: Pay any outstanding green taxes using online payment methods.

When your payment is successful, you will be notified that your green tax has been paid.

Green Tax on Vehicles

Tamil Nadu Green Tax

Type of Vehicle

Tax

Two-Wheeler

Rs. 500

Four-Wheeler

Rs. 1,000

Maharashtra Green Tax

Type of Vehicle

Tax

Two-wheelers

Rs. 2,000

Four-wheelers (Petrol)

Rs. 2,000

Four-wheelers (Diesel)

Rs. 3,500

Andhra Pradesh Green Tax

Type of Vehicle

Tax

Two-Wheeler

Rs. 500

Non-Transport Vehicles (Over 15 Years of Age)

Rs.200

Transport Vehicles (Over 7 years of age)

Rs.200

Goa Green Tax

Vehicle Type

Tax

Two-Wheeler

Rs. 1,100

Four-Wheeler

Rs. 1,760

Heavy Motor Vehicle

Rs. 4,400

Medium Motor Vehicle

Rs. 2,640

Light Commercial Vehicle

Rs. 2,200