The Hindu : Green levy imposed on old vehicles

Online edition of India's National Newspaper
Saturday, Mar 22, 2003

Southern States

Southern States - Tamil Nadu

Green levy imposed on old vehicles

By Our Special Correspondent

CHENNAI March 21. The Tamil Nadu budget for 2003-04 introduces a "green tax" on old vehicles and increases the rate of motor vehicles tax on various categories, including for educational institutions. It also proposes a new basis for levying a life tax for non-transport four-wheelers.

The green tax, incorporating the principle of "polluter pays", will be: two wheelers: after 15 years from the date of registration, Rs. 500 for (viz, covering) five years; other than two-wheelers (non-transport): after 15 years from the date of registration, Rs. 1,000 for five years; all transport vehicles, after seven years from the date of registration, Rs. 500 per annum. This tax will be payable in addition to the normal tax, and a bill will be introduced for this purpose in the current session of the Assembly, the Finance Minister, C.Ponnaiyan, said today.

As for motor vehicle tax for goods carriages, the quarterly tax of Rs. 2,500 (plus Rs. 400 per 1,000 kg and part thereof in excess of 15,000 kg in laden weight) shall be revised to Rs. 2,500 plus Rs. 75 per 250 kg or part thereof in excess of Rs. 15,000 kg in laden weight. This revision will take retrospective effect from December 1, 2001, and will be collected in instalments.

Multiaxle goods vehicles having a laden weight exceeding 15,000 kg will pay a basic tax of Rs. 2,300 per quarter plus Rs. 50 for every 250 kg or part thereof in excess of 15,000 kg.

The rate revision for other classes of vehicles, (coming into force from April 1, except in the case of educational institutions) is as follows: For buses of educational institutions, a bill will be introduced for amending the Tamil Nadu Motor Vehicles Taxation Act to change the basis of the tax from per bus to per seat.

The life tax on four-wheelers (non-transport category) will be a uniform six per cent of the value of the vehicle.

A bill to amend the MVTA to provide for this will be introduced in the current session.

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