Transport and non-transport vehicles which are over 10 years and 15 years old, respectively, will have to pay green tax effectively from January 1, 2017, while entering Kerala. The Finance Minister T.M. Thomas Issac while presenting the revised budget of 2016-17 stated back then that the green tax will have to be paid while reregistering old vehicles. The Government has however, notified that green tax will be levied by Motor Vehicles department from January onwards.
Annually, Light Motor Vehicles (LMV) and other four-wheelers in the transport category will have to pay Rs 200 towards green tax. Whereas, the 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. 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. Old vehicles which do not pay green taxes will not be provided any services by the MVD.
Currently, Kerala has around 99 lakh registered vehicles. However, the motor vehicle department will soon start collecting 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 for subsequence offenses penalty of Rs 300 will be applicable.