Green Tax in Andhra Pradesh|Green Tax in Telangana

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In an eco-friendly move that can cause additional burden on vehicle buyers, Andhra Pradesh government to levy a Green tax.The Green tax will soon be imposed on all vehicles, barring motorcycles and autorickshawsThe State Assembly has passed the AP Motor Vehicles Taxation (Amendment) Bill 2021 on facilitating the introduction of green tax.The amendment was due to Centre’s recommendation of green tax to save the environment from carbon emissions by way of making vehicle owners pay for pollution.

The Andhra Pradesh Legislative Assembly on Wednesday, November 24 passed the AP Motor Vehicles Taxation (Amendment) Bill, 2021, for enhancing the tax on motor vehicles and net an additional revenue of Rs 409.58 crore per annum. Significant in the amended law will be the multi-fold increase in the ‘green tax’ on aged vehicles, making it a disincentive to continue their usage. Karnataka now tops the southern states in taxes on motor vehicles and now, with the new amended law, Andhra Pradesh too joins its neighbour.

Green Tax in Andhra Pradesh

In the case of transport vehicles that are 7- 10 years from the time of registration, green tax of ₹4,000, which is half of the quarterly tax per annum and similarly if the age of the vehicle is 10- 12 years ₹5,000 per annum and if the vehicle is more than 12 years old ₹6,000 per annum will be levied.

Along with the green tax, there is a one percent tax hike on new vehicles that costs below ₹5 lakh and 3 per cent on vehicles that cost between ₹10 and 20 lakhs, and on the luxury vehicles that costs more than ₹20 lakhs a total of 18 percent tax will be imposed, according to a release.

green tax in telangana

Moving the Motor Vehicles Taxation (Amendment) Bill, Transport Minister Perni Venkataramaiah (Nani) claimed it has been proposed to ‘rationalise’ the rates of life tax (on vehicles) in view of growing inflation and also the increasing need to improve road infrastructure, road safety and anti-pollution measures. The green tax was last revised in the year 2006.

There are 4.17 lakh transport vehicles (excluding autos and goods carriages) aged over seven years and another 20.31 lakh non-transport vehicles aged over 15 years in the state. In 2019-20, the state collected Rs 4.85 crore as green tax on transport and non-transport vehicles but, with the new enactment, it hopes to garner an additional revenue of Rs 50 crore per annum.

green tax in telangana benefits

The rationalisation of green tax is to discourage older vehicles from plying on the roads,” the Transport Minister said.

For new vehicles, on two-wheelers costing up to Rs 50,000, the tax rate of nine per cent has not been changed but, on those valued above Rs 50,000, the life time tax has been enhanced to 12% to net an additional Rs 163 crore to the government.

For cars, the tax rates have been hiked by one per cent (up to Rs 5 lakh), two per cent (up to Rs 10 lakh), three per cent (up to Rs 20 lakh) and four per cent (above Rs 20 lakh).

Meanwhile, the Assembly also passed another Bill to further amend the AP Cinemas (Regulation) Act, 1956, making it mandatory for exhibitors to sell movie tickets only through the online booking platform, to be operated by the state Film Development Corporation. The Bill replaces an Ordinance issued on November 9.

Moving the Bill on behalf of the Chief Minister, Perni Nani, who also holds the Information and Public Relations portfolio, said the proposed online movie booking system would help in checking black marketing, besides stopping tax evasion.

The government decided to enhance the movie theatre experience by introducing a seamless online booking system, on the lines of Indian Railways. It caters to people without any hassle, saves time, reduces traffic problems and pollution

Green Tax in Andhra Pradesh