What Is Green Tax?

Looking at the deteriorating health of our atmosphere, the government has decided to take steps to curb pollution levels. Green tax is one such measure that levies a tax on vehicles that do not follow certain guidelines. The government of India is proposing to levy green tax on cars above 15 years old when they are due for renewal of registration certificates. Green Tax is also a behavioural check on people who ignore global warming and continue to use vehicles that generate heavy fumes. 

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The need for the green tax  

Green tax is levied directly on vehicles that are contributing to pollution. Vehicles with old engines are more prone to generating heavy pollutants. Therefore, the owner will have to pay the price of polluting the environment. Green tax is levied on both privately owned and commercial vehicles older than 8 years.  

The tax is a way to help people switch to better technology that doesn't harm the environment or at least, has a lower impact. Currently, many companies are developing vehicles- two and four-wheelers that have reduced flume levels. Sales of electric scooters are also picking up as people understand the need to switch to better sources of commute. Green tax is an initiative that will promote and facilitate the switch from conventional scooters to greener alternatives.

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How will the tax be levied?

Green tax will be levied on vehicles based on their category:

1. Heavy vehicles: Commercialised vehicles like trucks and tempos and goods carriers cause more pollution than smaller vehicles. Hence, a heavy tax is applied on such vehicles if they don't follow PUC guidelines. Moreover, heavy vehicles older than 8 years have to pay tax which increases if the vehicle is older than 15 years.
2. Personal vehicles: Personal vehicles may be smaller in size but they can cause a ton of pollution if they are not maintained. In India, many people don't get their vehicles serviced regularly. They also keep using obsolete technology which burns more fuel, is less efficient and releases heavy pollutants in flumes. Such vehicles will have to pay green tax if their emissions are not under the pollution tolerance level set by PUC.     

Requirement for PUC Certification 

The government of India has mandated that all vehicle owners must get their PUC certification. This means that the vehicle is compatible with the environmental standards and will not be fined. Vehicle owners are also required to renew their certification and maintain their vehicles to prevent air pollution.

Green tax is a necessary initiative to help people become more woke of the environment and it's needs. The government hopes that small initiatives like green tax would help sensitize people towards the need of the hour- saving our planet.