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What is Green Tax?

In a recent development, the Government of India has released a proposal of a green tax that will be levied on the renewal of the registration of personal vehicles more than 15 years of age. Moreover, as per this proposal, this tax will be lower for commercial vehicles but higher for any vehicle that will be used in a city with high pollution. Basically, this tax can also be called pollution tax or environmental tax as it is levied on all commodities that lead to pollution. This tax will not only discourage people from using old cars but will even help the authorities work towards reducing pollution by investing the money in planting more trees.

Green Tax for Cars and Two Wheelers

After levying green tax on commercial vehicles, finally, the government has even started imposing a green tax on private vehicles that are older than 15 years. The same tax is levied on commercial vehicles that are more than 8 years old. Given below is the tax structure on the private cars and two-wheelers. The below tax will have to be paid every 5 years.

Two wheelersRs.2000
Diesel vehiclesRs.3500
Petrol vehiclesRs.3000

Green Tax or Pollution Tax or Environmental Tax that is levied through Environment Compensation Charge first came into effect back in October 2015 and was introduced only in Delhi.

With time, several revisions have been made to this tax based on the various inputs provided by the Supreme Court. It’s because of the ECC that there was even a temporary ban on diesel vehicles with an engine size of more than 2000cc and now the Delhi government is even contemplating using Section 194 of the Motor Vehicles Act (MVA) that will put a ban on the entry of commercial vehicles at pre-defined times. Under the same section of MVA, the government can even put a fine of at least Rs 2,000 on those who are caught in violation of the rule

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