The Punjab government has approved the imposition of a green tax on older vehicles as part of its environmental strategy, expecting to raise Rs 34.4 crore from registration renewals. This tax targets private four-wheelers older than 15 years and commercial vehicles older than eight years, aiming to reduce pollution from ageing engines.
The decision, finalized by the cabinet on Wednesday, is expected to significantly impact vehicle owners. Out of the anticipated Rs 34.4 crore, more than Rs 28.56 crore is projected to come from private vehicles. Currently, there are 72,630 private four-wheelers aged 15 years or more due for renewal. The tax will be levied once for five years at the time of registration renewal.
In terms of capacity and gasoline, the green tax for these vehicles has changed considerably. In this regard, people who own 4 wheelers that run on petrol and have an engine size of up to 1500cc will pay Rs 3000 as tax while the diesel ones with similar capacities should pay Rs 4000. But for those cars with engines exceeding 1500cc, they will face a charge of Rs 4000 for petrol and also diesel ones shall be charged Rs 6000.
The green tax also extends to two-wheelers, with 13,438 petrol and 1,493 diesel two-wheelers due for renewal. The tax for these vehicles is set at Rs 500 for petrol and Rs 1,000 for diesel.
In addition to private vehicles, the green tax will apply annually to commercial vehicles renewing their registrations. The transport department is anticipating the collection of roughly Rs 5.84 crore from these cars according to its various levies that may rise between Rs 250 and Rs 2,500 based on vehicle type and size. This includes big lorries (Rs 2,500), middle-sized trucks (Rs 2000), little cars (Rs 1,500), and taxis like motor vehicles (Rs 500) etc.
The green tax is part of Punjab’s overall attempt to address environmental pollution by incentivising the withdrawal of older, more polluting vehicles off the road.
