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After hike in taxes, fuel prices & inflation, now eco-tax for AP vehicles

In an eco-friendly move that can cause additional burden on vehicle buyers, Andhra Pradesh government will levy a Green tax. The Green tax will soon be imposed on all vehicles, barring motorcycles and auto rickshaws.

The State Assembly has passed the AP Motor Vehicles Taxation (Amendment) Bill 2021 on Wednesday facilitating the introduction of green tax. The amendment was due to the Centre’s recommendation of a green tax to save the environment from carbon emissions by way of making vehicle owners pay for pollution.

All vehicles over Rs. 5 lakh to pay additional tax

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 government release.

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Tejaswini Pagadala

Communications Consultant: TEJASWINI PAGADALA is an independent communications consultant. She has previously worked with the Andhra Pradesh Chief Minister’s Office as the Communications Officer where she has written English speeches for the CM, managed English media communication from the CMO and handled social media accounts of Andhra Pradesh Chief Minister and the Government.
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