{"id":11952,"date":"2023-05-03T09:37:49","date_gmt":"2023-05-03T04:07:49","guid":{"rendered":"https:\/\/businessjargons.com\/?p=11952"},"modified":"2023-05-03T09:37:49","modified_gmt":"2023-05-03T04:07:49","slug":"green-tax","status":"publish","type":"post","link":"https:\/\/businessjargons.com\/green-tax.html","title":{"rendered":"Green Tax"},"content":{"rendered":"

Definition<\/strong>: Green Tax is a type of excise duty which the government imposes on those vehicles which cause the dispersal of pollutants in the environment. The motive behind the introduction of a green tax is to prevent people from anti-ecological behaviour and make them more aware of environmental concerns. Another way to see this tax is that it is a fee on those vehicles which fail to meet specific requirements.<\/p>\n

An alternative term for green tax is environmental or pollutant tax.<\/p>\n

To be precise the introduction of this tax by the government is to discourage vehicle owners from driving vehicles which are too old. This is because they emit more pollutants in comparison to new vehicles. The emission of pollutants has resulted in an increase in the level of carbon monoxide and sulphur-di-oxide in the environment over the years.
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Why Green Tax is Implemented?<\/h2>\n

Air Pollution is among the burning issues in India at present, especially in metropolitan cities like Delhi, Kolkata, Mumbai, Ghaziabad, Noida, etc. The primary cause of this air pollution is vehicle exhaust<\/strong>. In the last few years, the problem of pollution has become so intense that it has resulted in serious health issues for people living in such areas.<\/p>\n

The main cause of this pollution is the fumes released by the outdated engines of vehicles, that pollute the environment. Therefore, in order to curb pollution, the government has announced a special system of tax for vehicles, i.e. Green Tax.
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\nThe main reason for implementing a green tax is to lessen pollution<\/strong>.<\/p>\n

PUC Certification<\/h3>\n

A Pollution Under Control Certificate<\/strong> is authentication that the vehicle fulfils the norms set by the authorities. It is necessary for every vehicle owner in India. Further, it requires renewal from time to time. Even the police authorities may ask you to show this certificate at any time. In case, the owner of the vehicle fails to show the PUC certificate, he\/she needs to pay a fine.<\/p>\n

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Do you know?<\/h4>\n

According to reports, the commercial vehicle segment i.e. trucks, three-wheelers, taxis and buses contributes to 65-70% of the pollution caused by vehicles, while they constitute only 5% of the total vehicle fleet. On the other hand, vehicles manufactured before the year 2000 or even before, contribute to 15% of the pollution caused by vehicles, while they constitute only 1% of the total vehicle fleet.<\/p>\n

So, what we have understood is – the older the vehicle, the more will be pollution it causes.<\/p>\n<\/div>\n

Vehicles covered under Green Tax<\/h3>\n

With effect from April 1, 2022, Central Government started charging green tax. Both commercial and personal vehicles have to pay a green tax. Moreover, it varies from one state to another. Government imposes green tax at a higher rate when the owner registers the vehicle in a city where the pollution level is high.<\/p>\n