Here’s what you need to know about Green Tax for vehicles in India
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Pollution is a rising issue in India with metropolitan cities like Delhi witnessing high levels of pollution throughout the year. Over the past few years, the pollution levels have gone up drastically, causing a lot of medical issues for people living in big towns and cities. The fumes emitted by vehicles are one of the main causes of pollution. In an effort to cut down and control pollution, the government has implemented a special tax system for vehicles called the ‘Green Tax’. Green tax is a type of excise duty that has been placed on any objects/vehicles that cause pollution.
Fortunately, the government of India has implemented an easy method for citizens to pay off their green taxes online. Vehicle owners can pay off their green tax through the official VAHAN website, by following the simple steps given below:
Step 1: Go to the Vahan website and log in using your credentials.
Step 2: Enter your vehicle registration information on the website.
Step 3: Click on the ‘Pay Your Tax’ option and enter your phone number.
Step 4: Finish the OTP verification, and click on your appropriate tax option.
Step 5: Pay your pending green tax through online payment methods.
Once your payment is successful, you will receive a message/notification that your green tax has been paid.
The exact green tax that is applicable on vehicles may vary depending on the state that you live in. The rate of green tax may also depend on the level of pollution in your city. Let’s take a look at the green tax rate across a few states in India:
Green Tax Rate, Maharashtra
Vehicle Type |
Tax Amount |
Two wheelers |
₹2,000 |
Four wheelers (Diesel) |
₹3,500 |
Four wheelers (Petrol) |
₹2,000 |
Green Tax Rate Goa
Vehicle Type |
Tax Amount |
Two wheelers |
₹1,100 |
Four wheelers |
₹1,760 |
Tamil Nadu Green Tax
Vehicle Type |
Tax Amount |
Two wheelers |
₹500 |
Four wheelers |
₹1,000 |
The green tax rate for commercial vehicles is indicated below:
Commercial Vehicle Type |
Green Tax Liability |
Six-seater taxis |
₹1,250 |
Service vehicles |
2.5% of annual tax |
Contract buses |
2.5% of annual tax |
Autorickshaws |
₹750 |
Vehicles with more than 7,500 kg capacity |
10% of annual tax |
Light good vehicles |
₹1,250 |
Tourist buses |
2.5% of annual tax |
FAQs on Green Tax in India
Are there any vehicles who are not charged with green taxes?
Electric-powered vehicles and CNG-based vehicles are exempt from paying green taxes.
Is the green tax the same everywhere?
Different states in India have their own rates for green tax. Moreover, certain cities that are highly polluted may have higher green tax rates.
Can I skip paying green tax?
If your vehicle falls under a category where green tax is applicable, then you will have to mandatorily pay the tax. If you do not pay your green tax on time, there may be legal consequences and fines.
What are some other important documents I must carry when travelling?
You will have to carry your driving licence and insurance policy papers while travelling. If you do not have insurance for your vehicle or if it has expired, you should buy a motor insurance policy as soon as possible.
Can I buy a motor insurance policy online?
Yes, you can buy a motor insurance policy online at Bajaj Markets and at other insurance websites.
What exactly is the Green Tax?
Older automobiles pay the Green Tax because they pollute the environment more. The additional fee is imposed to encourage bike/car owners to upgrade their vehicles and abandon older vehicles. Because older automobiles emit far more unpleasant gases, this ban was enacted in densely populated areas.
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