Skip to main content

Every Info About Green Tax & Its Impact on Vehicles in India

Image
By Arpit Kulshrestha
Green Tax on Vehicles

In the concern to stop the pollution of the country the central minister of Road Transport and highways Nitin Gadkari has permitted the plan of Green Tax on the older vehicles on 25 Jan 2021. The proposal is being shown for the consultation first prior to the notification. 

A draft Voluntary Vehicle Fleet Modernisation Programme was launched by the union govt in 2016. The major goal of the program is to ban 28 million decade-old vehicles on the road. 

  1. The transport vehicles which are older than 8 years to be levied on 10 to 25% of road tax on the restoration time of fitness certificate. 
  2. Personal vehicles to be imposed on the duration of the restoration of the 'Registration Certification' after 15 years.
  3. The vehicles of the public transport like city buses to be imposed with less Green taxes. 
  4. A green tax of 50% of the road tax is to be imposed on the vehicles enrolled under the highly polluted cities.
  5. The green tax is being relied on for fuel like petrol, diesel, and the type of vehicles and is known as different.

Importance 

The Green tax will assist in diminishing the issue of pollution and will impose a duty on them which is to be paid for the pollution. 

The revenue accumulated is to be kept in a separate account and is utilized to handle the pollution. To monitor the emission level it is utilized by the states so as to set up the state of art facilities.

Release From Green Tax

  1. Vehicles like strong hybrids, electric vehicles, and alternate fuels like CNG, ethanol, LPG, etc. 
  2. Vehicles used for farming like tractors, harvesters, tillers, etc. 

Advantages of Green Tax

  1. To prevent people from utilizing the vehicles that pollute the environment. 
  2. To push and prompt people to switch to newer less polluting vehicles. 
  3. It will lessen the pollution level and impose the person to furnish the amount for polluting the environment.

Nearly 5 % are commercial vehicles out of the total vehicle fleet, which contributes towards 65 to 70% of the total vehicular pollution. The vehicles that are to be made prior to the year 2000 constitute lower than 1% of the total vehicle fleet however it donates towards 15% of the total vehicular pollution. 

Moreover, Nitin Gadkari, Union Minister of Road Transport and Highways has permitted the scheme of the deregistration and scrapping of the vehicles which the government buys as well as the Public Sector Undertaking (PSU) that is exceeding 15 years in age. On its arrival, it will come into effect from 1/04/2022.

FM Nirmala Sitaraman states in her Union Budget for the Financial year 2021-22 that the council will precede the voluntary vehicle scrapping policy to the incentivized individual to replace their old vehicles with new ones. Indeed a fitness test is to be furnished post 15 years for the commercial vehicles as well as post 20 years for the personal vehicles.

In July 2019 the motor vehicle act was changed to engage the scrapping scheme. To have modern safer and lower polluting vehicles and electric vehicles. 

Comments

Post a Comment

Popular posts from this blog

Why Small Firms Should Consider Gen Payroll Software?

By Arpit Kulshrestha
Businesses in this competitive era would be required to manage the payroll. Payroll software has multiple operations such as paying employees, following tax laws, managing employee benefits, filing important documents, and keeping accurate records. Businesses that manage tasks manually or with spreadsheets can result in inappropriate compliance and issues, wasting time in doing operations. Gen Payroll software arrives to manage payroll with accuracy and resolve the issues that come therein. The merits and demerits of Gen Payroll software are mentioned below. Gen Payroll Software Gen Payroll is a payroll management software made by SAG Infotech . It eases and automates the process of payroll. The software’s features are tracking employee attendance, calculating salaries, ensuring compliance with laws like PF (Provident Fund), ESI (Employee State Insurance), and TDS (Tax Deducted at Source), as well as generating payslips. Businesses, whether small or large, can use this software. ...
3 comments
Read more

How ITR Software Assists Individuals in Filing Tax Returns

By Arpit Kulshrestha
Every assessee's process of income tax return (ITR) filing is significant, as it contributes to Indian's economy. The Income Tax Department has made efforts to facilitate this approach in recent years, but numerous people still see themselves steering a difficult financial system, multiple tax deductions, miscellaneous exemptions, and changing tax laws. This complexity can turn what must be an easy task into a significant challenge. In this context, income tax software evolves into an important partner, presenting a useful variety of accuracy, efficiency, and reassurance. The software enables return filing that permits taxpayers to handle their financial responsibilities when complying with the law. 1. Accurate Tax Calculations An incorrect income tax calculation of taxes could result in messages from the Income Tax Department or missed refunds. The tax software helps in finding taxable income and tax deductions that you may be allowed, like insurance or home loans. The co...
Post a Comment
Read more

Major GST & Filing Updates 2025: Must-Know for Businesses

By Arpit Kulshrestha
In 2025, India made amendments to its Goods and Services Tax (GST) system, which was introduced in 2017. The primary purpose of this amendment is to ensure that businesses and individuals comply with tax regulations, reduce tax fraud, and streamline tax management through the use of technology. The GST Network (GSTN) and the Central Board of Indirect Taxes and Customs (CBIC) have implemented new processes and software systems to streamline the tax return filing procedure for individuals. These improvements aim to simplify the tax filing process, minimise errors, and ensure that all taxpayers, as well as tax professionals, fulfil their tax obligations responsibly. Updates for the same have been given, and the impact they have had on business, accounting, and GST software providers. GSTR‑3B Locking Mechanism Introduced from July 2025 In 2025, an amendment was introduced regarding how businesses report their taxes using GSTR-3B. Now, the details of sales made by businesses, referred to as...
Post a Comment
Read more