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Created on:

24 Jul 2023

Last Updated on:

19 Dec 2024

Read about Vehicles that Comes Under the Green Tax in India . For more information, check out the car insurance policy from Zurich Kotak General Insurance.

Vehicles that Comes Under the Green Tax in India Lets Explore

Looking at the factors that pose a serious threat to the air quality of Indian cities, the Indian government has decided to levy a green tax on vehicles that are likely to cause higher pollution levels. Green tax is one of the many crucial & much-needed measures taken by the government of India to implement traffic rules to curb the ill effects of air pollution caused by motor vehicles.

The proposition to levy green tax in India has been made on motor vehicles that are older than 15 years and are still to renew their registration certificates. As a measure to check air pollution, the green tax is mandated to ensure the checking of vehicles emitting heavy fumes, disregarding the effects of global warming.

What is the need for a green tax?

Vehicles that run on older versions of engines are prone to emitting pollutants that are a significant contributor to worsening air quality. As a penalty for polluting the environment, all motor vehicle owners with vehicles having engines installed 15 years ago are liable to pay the green tax as part of abiding by traffic rules.

This tax also encourages people to shift to better automobiles that are engineered using modern technology that abides by the latest traffic rules and norms mandated by the government as a means to curb air pollution. The manufacturing & sale of electric vehicles has made daily commute an eco-friendly matter. This tax will conveniently facilitate the switching of vehicles from older versions causing pollution to newer and greener alternatives.

How is the tax levied?

Green tax is usually levied on automobiles based on their category, used for commercial purposes or personal commitments. It is levied as follows:

Heavy Vehicles

Commercially used automobiles such as heavyweight trucks and lorries are likely to cause more pollution than privately owned vehicles. Hence, such vehicles are more heavily taxed than other automobiles. Moreover, such vehicles are already taxed if they are older than eight years, and this tax increases if they become older than 15 years.

Personal Vehicles

Although smaller in size than commercial vehicles, privately owned vehicles can also cause pollution if not maintained properly. Older versions of cars use more fuel, contributing to greater pollution levels, especially when servicing is not resorted to regularly. They are taxed if they do not maintain pollution tolerance levels.

Conclusion

The green tax is a highly important and welcome initiative aimed at making people aware of the dangers their vehicles pose to the environment. This measure encourages vehicle owners to switch to greener alternatives, thereby contributing to reduced air pollution.

Moreover, having car insurance is essential to ensure financial security while maintaining compliance with government regulations. Make sure your vehicle is protected with the right policy.


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Team Zurich Kotak GIC

The content of this blog has been created and carefully reviewed by the esteemed team at Zurich Kotak General Insurance, with the sole purpose of providing valuable guidance and sharing insights on the importance of general insurance. Our objective is to assist users in making informed decisions when purchasing or renewing insurance policies for their cars, bikes, and health. Our expertly curated information aims to empower our readers with the knowledge they need to protect their valuable assets and financial interests.

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