Green Tax is an environmental charge imposed by the government on vehicles as a way of reducing air pollution. It applies to both new and old vehicles depending on their emission level and other factors.
The green tax, which is also known as the environmental tax or pollution tax, is now imposed on anything that contributes to environmental pollution. The Central Government has made it mandatory to implement a green tax on private vehicles that are over 15 years old when renewing the RC.
The green tax varies from state to state in India, with some states like Maharashtra charging the most taxes for cars. This guide will discuss the green tax for cars in India and its various components, such as road tax, registration fees, insurance premiums, etc. We will also look at how to pay green tax online for Maharashtra, Tamil Nadu, and other states of India. Finally, we will understand why it is important to pay green tax diligently and how it helps protect our environment.
What are the Components of Green Tax?
Green tax in India is composed of several components. It includes road tax, green cess/taxes, registration fees, insurance premiums, emissions testing and certification charges, and parking fees.
Road Tax
Road tax is the most common component of green tax in India. It is levied on vehicles based on their size and type (passenger vehicle or commercial vehicle), the purpose for which the vehicle will be used (personal use or commercial use), and other factors like the cubic capacity of the engine, etc. The amount of road tax payable varies from state to state depending on local taxes applicable to it.
Green Cess/Taxes
This component applies to all fuel-powered vehicles, including hybrid cars. The rate applicable to green taxes is calculated based on the type of fuel and the vehicle’s engine capacity.
Registration Fees
The registration fee is a one-time payment for registering the vehicle in the state. It varies from state to state, depending upon the category of vehicle, such as light motor vehicles, medium motor vehicles, heavy motor vehicles, etc.
Insurance Premiums
Every car needs to be insured in India in order to get a valid driving license. Car insurance premiums vary depending on factors like the type of car, its make, and model, the age of the driver, etc.
Emissions Testing and Certification Charges
These charges are payable every two years at the time of renewal for petrol and diesel cars that do not have a valid CNG or LPG certification. The charges vary depending on the type of car and other factors.
Parking Fees
Parking fees are applicable to cars parked in commercial complexes, airports, etc. These fees are usually charged hourly or daily and can vary from place to place.
Car Green Tax Liabilities in India
The green tax amount that a vehicle owner needs to pay is determined by the size of the vehicle and the state they are in. According to government regulations, 10-25% of the total tax liability should be paid as green tax, depending on the situation. For instance, if the road tax is ₹6000, then the maximum amount of green tax payable would be ₹1500.
For private vehicles, there is a green tax that is up to 50% of their total road tax liabilities. This means that if the road tax is ₹6000, the maximum amount that can be charged for green tax is ₹3000.
The amount of green tax you need to pay depends on the pollution levels of your city. For example, residents of tier 1 and tier 2 cities like Patna, New Delhi, Mumbai, Chennai, etc., will be required to pay the highest amount of green tax. Here’s an example of a green tax on vehicles in Maharashtra and Tamilnadu.
Green Tax Maharashtra:
- Petrol four-wheelers – ₹3000
- Diesel four-wheelers – ₹3500
- Two-wheelers – ₹2000
Green Tax in Tamilnadu:
- Four-wheelers – ₹1000
- Two-wheelers – ₹500
For Commercial Vehicles, every Indian state follows the standard green tax norms:
| Type of Commercial Vehicle | Green Tax on Vehicles |
| Tourist buses | 2.5% of the yearly tax amount |
| Light goods vehicles | ₹2500 |
| Vehicles over 7500 kg capacity | 10% of the yearly tax amount |
| Auto rickshaws | ₹750 |
| Contract buses | 2.5% of the yearly tax amount |
| Service vehicles | 2.5% of the yearly tax amount |
| Six-seater taxis | ₹1250 |
How to Pay Green Tax Online?
The Indian government has introduced a convenient digital method for checking and paying green tax liabilities. The process takes only a few minutes and involves a few simple steps.
- Visit parivahan.gov.in/nrservices
- Log in to your registered account
- Enter your vehicle’s registration number
- Click on the “Pay Your Tax” button
- You will be asked to provide your registered mobile number
- You will be sent an OTP for verification, upon which you can choose the relevant tax option
Conclusion
Green tax is an important part of protecting our environment and curbing air pollution in India. It is applicable to all vehicles, depending on their age and emission level. The amount varies from state to state, and you can easily pay the green tax online through your registered account. Paying your green tax diligently will help protect our environment and ensure that you stay compliant with government regulations.