Understanding green tax for cars

Explore the concept of green tax and how to go about paying for it if it applies to your vehicle.
Understanding green tax for cars
3 min
02-March-2024

As increasing air pollution and environmental challenges continue to rise, the green tax for vehicles has emerged as a promising solution. It aims to discourage the use of older and polluting vehicles and promotes the adoption of cleaner and greener alternatives. The concept of green tax, also known as environment tax or pollution tax, seeks to encourage vehicle owners to make eco-friendly choices and reduce their carbon footprint.

What is the green tax?

The green tax is a taxation policy implemented by the Indian government to mitigate the adverse effects of vehicular emissions and contribute to a healthier and more sustainable future. It aims to discourage people from using older vehicles that create high levels of pollution and contribute to lowering overall pollution levels in the environment. The green tax revenue can also be used to fight pollution through the use of clean technologies.

Vehicles covered under green tax

The green tax primarily targets older and more polluting vehicles, including diesel and petrol cars or two-wheelers. However, it is not necessary to pay such taxes if you own an electric or even a CNG vehicle. The green tax on commercial vehicles is only applicable if the vehicle is more than eight years old. For personal vehicles, green tax liability arises if the car or bike is more than 15 years old.

The green tax varies for each state. The amount of pollution in the city may also have an impact on the green tax. The green tax rates vary for commercial vehicles as well.

How to pay green tax online?

There is an online system for hassle-free payment of the green tax. You can pay the tax on the official VAHAN website by logging in with your credentials and inputting your vehicle registration information. You will have to enter your mobile number and then follow the process of OTP verification and selecting the relevant tax option. Once you have done this, you can use various online payment methods to pay any outstanding green taxes. When your payment is successful, you will be notified that your green tax has been paid.

Benefits of green tax to environment

Green tax for vehicles helps in the reduction in air pollution. By discouraging the use of older, high-emission vehicles, the green tax contributes to reducing the amount of pollution in the air and improving public health outcomes. The tax incentivises vehicle owners to opt for newer, cleaner, and more fuel-efficient vehicles, supporting the growth of the green automotive industry. This, in turn, creates demand for eco-friendly choices and helps to reduce the carbon footprint of the transportation sector.

Disclaimer

While care is taken to update the information, products, and services included in or available on our application, website and related platforms, there may be inadvertent inaccuracies or typographical errors or delays in updating the information. The material contained in this site, and on associated web pages, is for reference and general information purpose and the details mentioned in the respective product/service document shall prevail in case of any inconsistency. Subscribers and users should seek professional advice before acting on the basis of the information contained herein. Please take an informed decision with respect to any product or service after going through the relevant product/service document and applicable terms and conditions.

*Terms and conditions apply