April 12, 2026 in India — Car emission tax (green tax) applies to vehicles over 15 years old in India. Understanding green tax rates, PUC requirements, and compliance costs helps you budget for older vehicle ownership.

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This guide covers all emission-related taxes and the upcoming BS 6 Phase 2 norms.

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Green Tax Overview

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Green tax is an annual environment cess on older vehicles:

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  • Applies to: Vehicles older than 15 years
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  • State-specific: Rates vary by state
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  • Annual payment: With vehicle registration renewal
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  • BS VI norm: Some older vehicles may face restrictions
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Green Tax Rates by State

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StateCar Green TaxFrequency
DelhiRs 1,000-3,000Annual
MaharashtraRs 2,000-5,000Annual
KarnatakaRs 1,500-4,000Annual
Tamil NaduRs 1,000-3,000Annual
GujaratRs 500-2,000Annual
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Green Tax by Vehicle Age

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Vehicle AgeGreen Tax RateNotes
15 yearsRs 1,000-2,000First year applicable
15-20 yearsRs 2,000-4,000Increasing rate
>20 yearsRs 4,000-8,000Highest rate
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PUC Certificate Requirements

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PUC (Pollution Under Control) certificate is mandatory:

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  • Validity: 6 months for new vehicles, 1 year for others
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  • Cost: Rs 60-100 per test
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  • Fine: Rs 1,000 for no valid PUC
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  • GST on PUC: Included in test fee
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BS VI Emission Standards

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Since April 2020, only BS VI vehicles can be sold:

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  • Older BS III/IV: Can still be driven
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  • Scrappage policy: May incentivize older vehicle removal
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  • Green tax: Higher for pre-BS VI vehicles
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Vehicle Scrappage Policy

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Government's vehicle scrappage policy aims to remove old polluting vehicles:

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  • Mandatory fitness: For vehicles >15 years old
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  • Scrap value: 4-6% of ex-showroom price
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  • No road tax: After scrapping, re-registration exempts road tax
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  • Certificate: Vehicle Fitness Certificate from authorized centers
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Electric Vehicles: No Green Tax

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Electric vehicles are exempt from green tax:

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  • Zero emissions: No pollution certificate required
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  • No green tax: Annual exemption
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  • BS VI compliant: Always, by default
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Total Annual Compliance Cost for Older Cars

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For a 18-year-old petrol car in Maharashtra:

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  • Green tax: Rs 4,000/year
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  • PUC certificate: Rs 1,200 (2 tests)
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  • Insurance: Rs 20,000/year (high for old car)
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  • Fitness test: Rs 1,000-2,000 (if applicable)
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  • Total annual cost: Rs 26,000+
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How to Pay Green Tax

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  1. Visit Parivahan portal or local RTO
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  3. Select \"Tax Services"
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  5. Choose \"Green Tax" payment
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  7. Enter vehicle registration number
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  9. Pay via net banking/UPI
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  11. Download receipt
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Frequently Asked Questions

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What is the green tax for cars in India?

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Green tax ranges from Rs 1,000 to Rs 8,000 annually depending on vehicle age and state. Older vehicles (>20 years) pay the highest rates.

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How often should I renew PUC certificate?

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PUC certificates are valid for 1 year for most vehicles and cost Rs 60-100. Renew before expiry to avoid Rs 1,000 fine.

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Are electric vehicles exempt from green tax?

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Yes, electric vehicles are completely exempt from green tax as they have zero direct emissions and don't require PUC certificates.

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Can I avoid green tax by scrapping my old car?

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Scrapping your old vehicle eliminates green tax but may not be financially beneficial unless you receive government incentives or need a replacement.

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Conclusion

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Green tax adds significant annual cost to older vehicles. Consider switching to EV or scrapping old vehicles to avoid ongoing compliance costs. Use our annual cost calculator.

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Disclaimer: This article is for informational purposes only. Green tax rates change. Verify with state transport department.

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अस्वीकरण: यह लेख केवल सूचनात्मक उद्देश्यों के लिए है। हरा कर बदलता है।