Effective from January 1, 2017, Kerala will be imposing green tax on all old vehicles which include transport vehicles which are over 10 years old and non-transport vehicles which are above 15 years.

Earlier, Finance Minister T.M. Thomas Issac while presenting the revised budget of 2016-17 stated that the Green Tax will be collected at the time of re-registration of older vehicles. However, the Government has issued a notification stating that green taxes will be levied by the Motor Vehicles Department from January.

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Light Motor Vehicles (LMV) and other four-wheelers in the transport category will have to pay Rs 200 towards green tax annually. As for four-wheelers and above vehicles which are under non-transport category will have to pay Rs 400 for five years.

The old medium sized vehicles will have to pay Rs 300 and the heavy vehicles will have to pay Rs 400. Old vehicles which do not pay green taxes will not be provided any services by the MVD. Moreover, motorcycles and three-wheelers in non-transport category will have to pay a fee of Rs 50, whereas, cars, motorcycles and three-wheelers which are registered as transport vehicles Rs 100.

Currently, the number of vehicles that have been registered in Kerala has reached around 99 lakh. However, the motor vehicle department is yet to collect final number of motor vehicles who will have to remit green tax. Old vehicles entering the state will have to remit green tax at check-posts.

Defaulting green tax payers will be penalised under section 177 of motor vehicles act and first offence will attract a penalty of Rs 100, while on subsequence offense Rs 300 will be charged.