Older Vehicles in Kerala to Pay Green Tax from 1st January

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Older vehicles in Kerala to pay Green Tax from the first of January 2017, motorcycles and autorickshaws are exempted

Transport vehicles older than 10 years and non-transport vehicles above 15 years will have to pay green cess in Kerala from 1st January, 2017. The state government has taken this decision to curb the pollution level in there. The older vehicles are known for emitting more pollutants and this decision is believed to discourage their usage on roads.

All the vehicles registered in the state have to pay the green tax. Also, the older vehicles registered in other states entering in Kerala have to pay the cess as well. However, the motorcycles and autorickshaws in the state have been exempted from this tax. Earlier Kerala Finance Minister T.M Thomas announced this tax will be collected during re-registration of older vehicles, but the government has notified it will be levied from 1st January, 2017.


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According to the new rule, the light motor vehicles will have to pay Rs. 200 annually, while the amount for the medium vehicles is Rs. 300 and Rs. 400 for the heavy vehicles. The older vehicles not paying green tax will not be provided any services by the Motor Vehicle Department of Kerala. The number of vehicles coming under the new green tax is yet to be announced by the MVD.

The state government anticipates, by implementing the green tax it will be able to generate around Rs. 7 crore revenue per year. Currently the Kerala MVD is working on the details of the green tax. This tax was first proposed by the State Planning Board during the previous UDF government in the state. It is believed that the tax will help to reduce pollution as well as decongest the roads in the state.

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Meanwhile, the state government is yet to specify any penalty for the defaulters. It has not specified particular time period within which the green tax needs to be paid.