21 Dec, 2024
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What is Green Tax for Cars in India?
Understanding Green Tax in India
Otherwise referred to as pollution or environmental tax, green tax is an excise duty that the government imposes on goods and objects that are day by day progressing into degrading the environment. That is, it is used to lower the pollution of the country by promoting options that will be eco-friendly. A government-proposed green tax on cars and bikes is an attempt to answer some of the problems posed by vehicular emissions. The short-term intention of the green tax is the alleviation of environmental issues created by vehicular emissions. A cleaner environment leads to a greener, more sustainable future. The long-term aspect reveals that it could well be the major step in reducing vehicular pollution.
Advantages of Green Tax
From reducing air pollution to providing a revenue source for the government, green tax has multiple benefits.
Reduction of air pollution remains the core advantage. This tax will encourage newer, lesser-emitting vehicles by discouraging the use of the older, high-emission versions. This transition promotes cleaner urban environments, contributes to healthier living conditions, and supports sustainable development goals.
The green tax would also focus on the manufacturers that give more attention towards the creation of sustainable or green vehicles.
Ideally, the income generated by the green tax would be ploughed into environment conservation projects such as afforestation and sustainable transport initiatives.
Green tax may also be used to fund public transportation systems. When improved, it is supposed that a greater percentage of people will be motivated to use public transport as their preferred mode of transport.
Thus, the Green tax collections can prove a source of revenue for the government, which is then used in delivering other welfare programs.
Vehicles For Which Green Tax Is Applicable
The green tax is to be paid on both commercial and personal usage vehicles. However, in India, the green tax applies to cars and motorcycles with petrol and diesel. In the case of owning a CNG vehicle or electric vehicle, there is no green tax for vehicle owners. The type of vehicle an individual is using might have a variation of norms for green tax. The generalised rules for green tax are given below.
Commercial Vehicles: The green tax is charged on older commercial bikes, three-wheelers, and four-wheelers that are over 8 years old.
Private Cars: A green tax is levied if the car or bicycle is over 15 years of age for private use.
Green Tax For Old Vehicles
In India, like the road tax, the rate of green tax varies from state to state. It’s better to ask the authorities in the local motor vehicles department regarding this information. According to the guidelines for green taxation policy, commercial vehicles older than 8 years have to pay the tax at the time of renewal of the fitness certificate. On similar lines, personal vehicles more than 15 years old must pay green tax upon renewal of their registration certificate. The amount of tax for commercial vehicles is set in the range of 10% to 15% of aggregate road tax liability. The tax may be chargeable depending on the engine type of the vehicle and the seating capacity of the vehicle. Almost 50% of the amount of the road tax liability may be attracted by private cars. The State governments are empowered to decide on a higher rate of environmental tax based on the pollution level in a particular RTO zone.
Green Tax Rates For Vehicles In India
Green tax rates for vehicles in India can vary based on factors such as vehicle type, age, and the state's specific regulations. Generally, the following categories are used to determine the applicable green tax rates:
How To Pay Green Tax Prices Online
Vehicle owners can conveniently access an online payment solution for green taxes on cars and bikes by visiting the official VAHAN website. To ensure a smooth payment process, here are the detailed steps for paying the green tax for both bikes and cars, making compliance effortless and efficient.
Step 1: Begin by visiting the official VAHAN website, where you can find the necessary information and resources to pay your green tax. This platform serves as the gateway for vehicle owners to fulfil their green tax obligations for both bikes and cars efficiently.
Step 2:Click on the login button and enter your registered username and password to access your account. This step will allow you to log in securely and proceed with the green tax payment process for your vehicle.
Step 3: Next, enter your vehicle's registration number in the designated field. This step is essential for identifying your vehicle and retrieving the relevant information needed to process your green tax payment.
Step 4: Once your vehicle details are displayed, select the "Pay Your Tax" option. You will then be prompted to enter your registered mobile number, which is required for verification and to receive payment confirmation.
Step 5: After entering your registered mobile number, proceed with the OTP verification process. Once you receive the one-time password (OTP) on your mobile device, enter it to verify your identity. Following successful verification, select the appropriate tax options applicable to your vehicle for the green tax payment.
Step 6: Once you have selected the appropriate tax options, you can proceed to pay any outstanding dues by following the online procedure outlined on the website.
Step 7: Once paid, collect the acknowledgement receipt and keep the future reference.
Conclusion
Green tax in India is a brilliant step to control vehicular pollution. The levy of tax prompts people not to use old vehicles that cause severe pollution on the environment and encourages people to buy environment-friendly vehicles. Green tax rates may differ according to the usage of engine and vehicle usage. In addition, the green tax may differ state-wise. Vehicle owners with old vehicles can easily renew their car and bike green tax by logging in to the official Parivahan portal or approaching the nearest RTO office. The green tax will reduce the usage of old vehicles, which are polluting; encourage green alternatives to vehicles, reduce pollution, and generate revenue for environment conservation.
Also read: Best Tips To Make Your Car More Eco-Friendly