Green Tax on Vehicles

India is one of the most polluted countries in the world, causing many deaths due to the harmful effect on the pollution. To combat this, the government of India has introduced a green tax on vehicles which will help in cutting down emissions and pollutants.

Green tax, also known as pollution tax or environmental tax is a type of tax levied on goods that cause environmental distress. Charging this type of tax helps in bringing down emission levels and also making behavioral changes in people. Green tax was introduced to discourage people from driving old vehicles since old vehicles are believed to generate emissions that can cause harm to the environment.

Green tax is applied on all types of vehicles based on their categorization. Hence, both personal and commercial vehicle owners are liable to pay green tax. CNG and electric vehicle owners do not have to pay any green tax.

Certain rules are also applicable on green tax levied for commercial and personal vehicles

Commercial vehicle: Green tax on commercial vehicles is applicable only if the vehicle is 8 years old

Personal Vehicle: Green tax is applicable for vehicles older than 15 years

Green tax is charged based on the road tax of the state which varies from state to state. Payment for green tax has to be made at the time of renewal of the vehicle's registration certificate.

The revenue generated from green tax helps in facilitating specialized emission or pollution monitoring stations.

Automobile technology changes in the course of 10-15 years and is more harmful to the environment than newer engines that are equipped with the latest technology. The tax is levied to discourage people from using old vehicles. By applying green tax on old vehicles, the number of old vehicles plying on Indian roads also reduces. The collected tax is then used to develop the state's infrastructure.

Vehicle Scrapping

There are certain rules which must be followed in case you decide to scrap your old vehicle and pay for its maintenance and give green tax to the government. Firstly, you need to obtain permission from the local RTO and cancel the vehicle’s registration. Information related to the vehicle can be obtained from the state RTO’s online portal. The application form has to be filled and an inspector will be assigned to check on the vehicle. You need to submit the RTO application form along with the relevant documents.

With the Vahan portal, online payment of green tax is simple and hassle free. You need to follow the below steps to make a green tax payment.

• Visit the Vahan portal
• Enter your vehicle’s registration number and click on proceed
• Enter your mobile number and choose pay your tax option
• On successful OTP verification, click ‘show details’ and select the right tax mode
• Proceed with making the payment from your preferred payment method

• Contact the insurance company within 48 hours of the accident or theft
• File an FIR in case of third party damage or theft of the bike
• Submit the required documents
• The insurance company will appoint a surveyor to check on the extent of damages
• The car will be sent to the garage for repair
• Cashless service will be provided in case the car is being repaired at a network garage
• In case of theft, insured declared value will be given to the policyholder after the police shares non traceable report