Green tax to be imposed on registration of new and old vehicles in Himachal Pradesh
The cost of vehicle registration in Himachal Pradesh is set to increase, as the state has implemented green tax on registration of both new and old vehicles. The green fee, which was earlier announced in 2023, will now be implemented after the Himachal Pradesh Transport Department resolved software-related issues that were delaying its collection. The green tax will be levied in addition to the existing registration fee, the amount of which will range from Rs 500 to Rs 4,000, depending on the type of vehicle.
The transport department has sought suggestions and objections from the public before implementing the new rule. Citizens have a week’s time to provide their feedback, after which the department will review the inputs and finalise the policy. The green tax will be added to the existing registration fee, which is calculated based on the total cost of new vehicles and the insured value for old vehicles. For old vehicles, an additional 3% tax is levied based on the value recorded in the insurance.
The revenue generated from the green fee will be allocated towards environmental and road safety initiatives, reflecting the state’s commitment to reducing its environmental footprint. While the fee will be applicable to all types of vehicles, the exact amount will depend on the category of the vehicle, with private, commercial and heavy vehicles being subject to different rates.
The initiative is a significant step in Himachal Pradesh’s efforts to address environmental concerns and enhance road safety. The decision was taken last year, but its implementation got delayed till now due to technical challenges in the department’s software.
Once the public consultation process is completed, the green tax will become mandatory for all vehicle registrations in the state. The transport department has assured that the feedback will be carefully considered before going ahead with the full implementation of the fee.
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