Green Tax For Bikes : Everything You Need to Know

Pollution is a big problem in India, and over the years, it has increased a lot. One of the main causes of air pollution is the smoke from vehicles. To help reduce and control pollution, the government has introduced a green tax for bikes and cars.

This green tax is a special tax on vehicles that are adding to pollution. In this blog, we will explain more about green tax for bikes, cars, and other commercial vehicles.

This green tax is a special tax on vehicles that are adding to pollution. In this blog, we will explain more about green tax for bikes, cars, and other commercial vehicles.

What is Green Tax?

Older vehicles in India have to pay a Green Tax because their engines produce more pollution. The Green Tax is a fee that owners of older bikes must pay. This tax applies to both personal and commercial vehicles. The amount of the Green Tax depends on the type of vehicle and the state you are in.

Older bikes release harmful gases or smoke, which increases air pollution. Big trucks carrying goods also come under this category. To reduce pollution, the Indian government has put this tax on older vehicles, especially in highly polluted areas like Delhi, where the tax is even higher.

The Green Tax is just on gasoline and diesel bikes. It does not apply to electric bikes or run on compressed natural gas or ethanol. They take all this Green Tax money and use it to build these emission testing facilities. The purpose of the Green Tax is to motivate people to drive cleaner bikes and help clean up the air in the nation.

The green tax for bikes after 15 years is usually high because older bikes cause more pollution. This tax encourages people to scrap their old bikes and buy new ones.

Which Vehicles Are Covered under the Green Tax?

Both personal and commercial vehicles have to pay the green tax. However, this tax only applies to petrol and diesel cars or bikes. If you own an electric or CNG vehicle, you don’t have to pay the green tax.

The rules for the green tax are different for personal and commercial vehicles. Here are the main points:

  • Commercial Vehicles: You must pay the green tax if your commercial car or bike is more than 8 years old.
  • Personal Vehicles: You need to pay the green tax if your bike or car is older than 15 years.

Remember, the green tax is usually a percentage of the state’s road tax. It is paid when you renew your vehicle’s registration certificate (RC). 

Green Tax Rate for Car, Bikes, and Commercial Vehicles in India

Here is the green tax structure for personal and commercial vehicles in India:

Vehicle CategoryApplicable Green Tax
Two-wheelers Rs. 2000
Diesel VehiclesRs. 3500
Petrol VehiclesRs. 3000
AutorichshawsRs. 750
Light Good VehiclesRs. 2500
Six Seater TaxisRs. 1250
Vehicles with more than 7500 kg capacity10% of annual tax
Service Vehicles2.5% of annual tax
Contract Buses2.5% of annual tax
Tourist Buses2.5% of annual tax

How to Pay Green Tax Online?

The Indian government has made it simple to pay the green tax online. Follow these easy steps to pay your green tax through the VAHAN website:

Step 1: Log in to the VAHAN website with your details.

Step 2: Enter your vehicle’s registration number.

Step 3: Click on ‘Pay Your Tax’ and enter your phone number.

Step 4: Complete the OTP verification and choose the green tax option.

Step 5: Use an online payment method to pay the green tax.

Once your payment is done, you will get a confirmation that your green tax has been paid.

Conclusion

Green tax in India is a good step to reduce vehicle pollution. This tax discourages the use of old vehicles that pollute the environment and encourages people to buy cleaner, eco-friendly vehicles. The green tax amount can change based on the type of vehicle and how it is used. It also varies from state to state.

If you have an old car or bike, you can renew the green tax easily online through the VAHAN website or by visiting your nearest RTO office. 

FAQs

What is a green tax?

Green tax is a fee that people pay for using older vehicles that cause more pollution. It helps reduce pollution in the country.

Who needs to pay the green tax?

Owners of petrol or diesel vehicles that are old. Commercial vehicles over 8 years old and personal vehicles over 15 years old need to pay

Do electric or CNG vehicles need to pay green tax?

No, electric and CNG vehicles do not have to pay the green tax. It only applies to petrol and diesel vehicles.

When do I need to pay the green tax?

You need to pay the green tax when renewing your vehicle’s registration certificate (RC) if your vehicle is old.

How can I pay the green tax?

You can pay the green tax online through the VAHAN website by following a few simple steps. You can also visit your nearest RTO office to pay.

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