What is the Green Tax on Vehicles – A Complete Guide

1105

5 min read

Green Tax is a measure taken by the government to make people conscious about the environment and to work for its sustainability in the future. Let us learn more about the green tax on vehicles in this post. 

Every day millions of cars increase the pollution level of the earth continuously. There are numerous trees that are being cut for different purposes and numerous hazardous industries which are contributing to the increasing toxicity of the environment. All these are in some way or the other deteriorating our environment, our earth. Of course, ‘climate change’ is a common term we hear always and it is real as we can see the environment has started showing variations already, which will keep changing in the future as well.

With the concept of Green Tax, the authorities are trying to take enough measures to make people environmentally conscious and head towards a sustainable future. So, let us understand Green Tax in India better in terms of vehicles.

Visual Stories by PayBima

What is Green Tax?

Pollution or Environment Tax, which is commonly known as Green Tax, is a charge we pay for contaminating the environment. This tax is targeted at people to bring upon behavioural changes among them. You may also say that Green Tax is a penalty paid for polluting or contaminating the environment.

Car Insurance from PayBima

What is the Green Tax on Vehicles?

In terms of vehicles, a green tax is a charge levied on your old cars and other vehicles since they cause more damage to the environment. Hence, old vehicle owners are charged with a green tax for contributing more towards the environment pollution. Green tax is applied on both commercial as well as private vehicles. However, the tax amount charged under the green tax might vary from state to state. For instance, the state of Maharashtra government charges green tax on private vehicles that are more than 15 years old and on commercial vehicles that are more than 8 years old.

Further verification can be made on green tax in terms of vehicle category. Like in the case of commercial vehicles they cause heavy pollution like the buses and trucks etc. Moreover, there are heavy vehicles like good carriers which release a substantial amount of smoke to the environment.  Further, there are many cities that are under the effect of enhanced smog levels. Thus, it becomes necessary for the authorities to curb the pollution level in places where the population density is high. For instance, Delhi is a city that has high smog levels. Hence various rules have been made to limit the entry of heavy commercial vehicles in the city. Also, various fines have been levied by RTO for not maintaining the rules.

PayBima's Khushi Ka Tohfa

Why is Green Tax Levied on Vehicles?

The primary reason for levying old vehicles with a Green Tax is because the technology in the automobile industry keeps changing in 10 – 15 years. Such old engines pollute the surrounding more as compared to new ones. Hence, the tax is levied to discourage vehicle owners from using 10- to 15-year-old vehicles. This will in a way limit the emission of hazardous smoke from such cars to the environment.

So, Green Tax will encourage more and more people to discard their age-old vehicles, thereby reducing the number of old engines plying on the roads. The green tax that is collected is used as a state fund for infrastructural development.

Car Insurance Renewal from PayBima

What is a PUC Certification?

“Pollution Under Control Certificate” is what the PUC Certificate stands for. (full form). In India, every owner of a vehicle must have this document. This document certifies that, as long as you adhere to environmental standards, you are able to ride or drive a car legally in India.

A PUC or Pollution Under Control certificate is a document that every vehicle must have in India. The PUC needs to be updated or renewed on a regular basis. Generally, traffic police officials request the PUC from vehicle owners while checking vehicle papers at traffic points.

A PUC implies that the vehicle you are using complies with the pollution norms as per your state requirement. A PUC that is not valid can lead to RTO fines.

What is Vehicle Scrapping?

Vehicle scrapping means reprocessing of an old or damaged car by a scrap dealer. However, there are certain regulations regarding the same that needs to be followed. So, if you are planning to scrap the old car you have, rather than spending money on its maintenance and on paying Green Tax, you must follow the rules.

First thing is, you need to cancel your vehicle’s registration and need to take permission from the RTO near you to scrap the vehicle. The online portal of the RTO offers all the information and more details on the same. All you need is to fill an application form at the RTO along with submitting relevant documents. They will assign an inspector to check your vehicle to take the process further.

How to pay green tax online in India?

Green tax payment online can be done by following the below steps:

  • Go to the Vahan portal
  • Submit the vehicle RC number and reach the “Pay your tax” service button
  • Tab on the button that says ‘Proceed’
  • Now, select “Pay your tax” option
  • Submit your mobile number to generate OTP
  • Tab the “Show details” button after submitting the OTP
  • Next, go to the tax mode
  • Click on the payment button and submit the payment online using online payment modes
  • Now, confirm the payment
  • Once the payment is done successfully you would receive a message in your registered mobile phone.

Top General Insurance Companies

To Conclude

It is the duty of everyone to protect the environment so that the pollution can be reduced through conscious effort. Hence, it is better to keep your vehicle serviced regularly. You may also use options like carpooling or using public mode of transport to reduce the pollution levels in the environment.

Related Articles by PayBima

Found this post informational?

Browse PayBima Blogs to read interesting posts related to Health Insurance, Car Insurance, Bike Insurance, Term Life Insurance, and Investment section. You can visit PayBima to Buy Insurance Online.

Also, check out the PayBima’s Guide and Glossary section –

 

View this post on Instagram

 

A post shared by paybima (@paybima)

FAQs: Green Tax and Why is Green Tax Levied on Vehicles?

What is green tax meaning?

Green taxes are the ones levied on energy, transport, pollution and resources etc. 

Which state collects green tax in India?

There are several states in India that collect green tax such as Karnataka, Goa, Gujarat etc.

What is the use of green tax on vehicles?

Green vehicles contribute towards a sustainable transport system as they reduce air pollution and greenhouse gas emissions. These vehicles are not just limited to operating efficiency and emissions but go much beyond.

What is the impact of green tax in India?

Green tax for cars impacts in a varied way. They discourage people from using old vehicles that might damage the environment. They also motivate people to switch to vehicles that cause less pollution. Green tax payment reduces the pollution level, and makes people pay for causing pollution.

Who is the green tax calculator in India?

The government authorities collect green tax in India.

Is there any green tax for bikes?

Yes, green tax is levied on bikes and other two-wheeler vehicles as well

Other Car Insurance Products

Apr 06, 2023
SHARE THIS ON
Author Bio
Author Image

PayBima Team
PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.

Related Blogs

Would love to hear from you

Share your candid feedback. Your email address won’t be published, we promise!

All fields are required

Find your suitable insurance plan

Speak to our advisor

Latest Posts

Mahindra Insurance Brokers Limited (A Mahindra Group Company) - Unit-202, A-Wing, 2nd Floor, Amiti Building, Agastya Corporate Park, Kamani Junction, LBS Marg, Kurla West, Mumbai - 400070. Tel: +91 22 66423800

Licenced by IRDAI License No. 261; License Validity : 17-05-2025; Category : Composite Broker; CIN : U65990MH1987PLCO42609 Member of Insurance Brokers Association of India (IBAI).

Insurance is the subject matter of solicitation.

For a seamless experience, use the latest version of Chrome/Firefox/Internet Explorer.

Copyright © 2024 Mahindra Insurance Brokers. All Right Reserved.

Get A Call Back
Get A Call Back