Skip to main content

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

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

Popular posts from this blog

A Full Guide to GST E-Way Bill 2 for Faster Compliance

  Have you encountered any challenges while trying to create a GST E-way bill using the government portal? If yes, SAG Infotech is here to provide some important solutions for you. NIC has launched the GST E-Way Bill 2 Portal. Designed to Offer GST E-way Bill Services with High Availability Using the e-way bill site, taxpayers and logistics operators can log in with their current account and password. Data from the GST E-way Bill2 site will be verified, combined, and available on the main GST E-way Bill portal for all business and analytical objectives. To guarantee that e-invoice generation is unaffected, this portal is integrated with another e-invoice portal for e-way bill generation. Users can freely create and amend E-Way Bills using the GST E-Way Bill2 Portal. The seamless integration and merging of the e-Waybill1 and e-Waybill2 systems will lessen reliance on the e-Waybill1 system in emergencies. E-way bill details are synchronised with the main portal in only a few seco...

Gen Online Payroll Software for Small Business in India

In today's digital world, every person and businessperson works very hard to manage data manually, which can be a time-consuming and labour-intensive task, particularly when information needs to be constantly updated and verified. Likewise, managing large volumes of employee-related data can be a challenging and overwhelming task for HR professionals. Therefore, to address the workload and complexity of these tasks, the IT sector has developed Payroll software. In recent years, we have seen a huge growth in the number of Payroll software options. Yes, there are many types of HR Payroll software available in the Indian market at present. If you're looking for a reliable and popular payroll software option, you can choose Gen Online Payroll software, brought to you by SAG Infotech. Whether the business is medium or small, Gen Payroll software can make managing numerous important tasks of a human resources manager hassle-free. The Online Payroll software assigns a unique ...

GST Collection of August 2024 Reaches INR 1.75 Lakh Crore

Concerning the financial front, gross GST collections for August 2024 show a strong 10% growth, reaching approximately ₹1.75 lakh crore.  This surge, driven by robust domestic consumption, led to a 9.2% increase in GST revenues from domestic transactions to approximately ₹1.25 lakh crore. Revenue from imported goods also saw a substantial rise of 12.1%, totalling ₹49,976 crores.  Despite the overall growth, there was a slight decrease from the ₹1.82 lakh crore collected in July 2024 when compared month-on-month. However, industry experts remain optimistic.  They point out that the 10% year-on-year increase at the commencement of the festive season is a strong indicator of sustained and potentially growing consumption in the upcoming months. The government's ongoing efforts to simplify the GST process, especially through measures such as adjusting rates to lower working capital expenses, have been positively acknowledged.  This dedication is also evident in the ₹...