Will Centre’s vehicle renewal norms put an end to Telangana's Green Tax?
The renewal fee, as per the notification issued on October 5, is eight times more than the cost of registering a new vehicle.
HYDERABAD: The notification on the renewal of registration of vehicles older than 15 years, issued by the Union Ministry of Road Transport and Highways, has triggered a debate on whether the State RTA should continue collecting ‘Green Tax’ on older vehicles. The renewal fee, as per the notification issued on October 5, is eight times more than the cost of registering a new vehicle.
The notification is set to be implemented from April 2022. The charges for renewing the licence of a 15-year-old motorcycle would be Rs 1,000, whereas the registration of a new one would cost Rs 300. The same for a light motor vehicle older than 15 years would be Rs 5,000, but for the registration of a new vehicle, one would have to pay just Rs 600.
The State RTA is already collecting around Rs 300 and Rs 500 as Green Tax, for bikes and cars respectively, in addition to the Rs 850 and Rs 1,200 sought for their renewal. It is estimated that over one crore vehicles, including 74 lakh bikes, would have to adhere to the new norms.
Telangana RTA officials have acknowledged that if the policy was implemented, it would increase the burden on the public. The sole intention of the norm is to discourage people from renewing licences, and instead opt for new vehicles. “Incentives would be offered to owners if they ditch their old vehicle and buy a new one. There’s also a life tax exemption,” said an official.
When asked if the Green Tax would be scrapped, the official said that if there is a question of redundancy, the State government would be forced to ponder over its necessity. The RTA activists have demanded the full withdrawal of the Green Tax. “Since the Centre has come up with a new set of norms, the State should stop collecting Green Tax,” said M Dayanand, Telangana Auto and Motor Welfare Union.