Kerala to impose Green Tax on old vehicles from January 1

The Kerala State Government has announced that old vehicles in the state will face a Green Tax from January 1, 2017. This tax will even be applicable for vehicles coming in Kerala from other states. The decision was passed in the state budget last year, and is a measure to keep air pollution levels in check.

All transport vehicles over 10 years old and non-transport vehicles over 15 years old will attract the said green tax. However, two-wheelers and three-wheelers have been exempted for the time being.

As per the official government order, the applicable tax will depend on the type of vehicle. For example, light transport vehicles will attract a green tax of Rs. 200 per year, while medium and heavy transport vehicles will be eligible for a tax of Rs. 300 and Rs. 400 per year, respectively. Meanwhile, owners of non-transport vehicles that are over 15 years old will need to deposit Rs. 400 for a period of five years.

No specific time window has been mentioned to get the taxes deposited. The government hasn't announced any penalty for the rule defaulters. As a result, the rule defaulters will be penalised under Section 177 of the Motor Vehicles Act, which has a maximum penalty of Rs. 100 for the first offense and Rs. 300 for any subsequent offense.

Source: ET Auto