Karnataka government has revised amount to be paid as green tax for renewal of fitness certificates
- Owners of vehicles older than 15 years will have to pay a high amount to get fitness certificates as per the revised green tax announced by the Centre
- Karnataka has been collecting green tax since April 1, 2002
- The new notification is as per central government instructions
WHAT – Pollution tax or environmental tax and is the tax levied on all the goods that cause environmental pollution. It is believed that charging tax on emissions will help bring about changes in firms and households
RECENT CONTEXT – The Ministry of Road Transport and Highways will levy a green tax on transport vehicles older than eight years at the time of renewal of fitness certificate at the rate of 10% to 25% of road tax.
WHY – The revenue collected through the green tax will be kept in a different account and will only be utilised for tackling pollution.
EXEMPTIONS – Vehicles like strong hybrids, electric vehicles and those running on alternate fuels like CNG, ethanol and LPG and vehicles used in farming, such as tractor, harvesters and tillers will be exempted.
DIFFERENTIAL TAXATION –
- Personal vehicles are proposed to be charged green tax at the time of renewal of registration certification after 15 years.
- Public transport vehicles, such as city buses, will be charged lower green tax.
- Higher green tax (50% of road tax) will be levied on vehicles being registered in highly polluted cities.
- Differential tax will also be charged depending on fuel (petrol/ diesel) and the type of vehicle