Registration under Green Tax sees jump in city, second-hand vehicle market keeps consistency
   Date :10-Jul-2023

Registration under Green Tax 
 
 
By Rutu Borkar
The concept of Green Tax, a scheme that enables vehicle-owners to increase useability of their vehicles beyond 15 years period, has seen a big jump in the Second Capital of Maharashtra. The registrations data with Regional Transport Office (RTO) reveals that on an average over 500 vehicles are registered per month under Green Tax segment. With the Government directives to phase out diesel vehicles that are more than 10 years old and petrol vehicles more than 15 years old from Indian roads, many owners who have maintained their cars in good condition enroll for this service, stated an RTO official.
 
At present there are more than 60,000 old vehicles plying on city roads. This includes 44,000 motorcycles that are more than 15 years old and more than 22,000 cars are on city roads. Other such vehicles include trailers, auto-rickshaws, tractors and other vehicles. However, all vehicle drivers are not keen on opting for the Green Tax registration. Old vehicles continue to pollute environment and go unchecked due to poor enforcement mechanism.
For the year 2022-23, a total of 8,780 vehicles obtained Green Tax certificates in Nagpur RTO jurisdiction by paying fees of Rs 2,08,36,809 collectively. A interest/late fee of Rs 43,56,547 was also levied on owners. A collective amount of Rs 2,51,93,356 was collected from vehicle-owners for the extended useability of their vehicles.
 
Officers of the department concerned at the RTO stated that old vehicles were run on the fitness track and then checked by the Inspector as per the prescribed guidelines. The owners have to submit all valid documents including pollution under control (PuC), insurance certificate and pay the prescribed inspection fees. Owners of petrol vehicles have to pay a fee of Rs 2,000 while diesel vehicle owners have to pay Rs 3,500 to obtain the Green Tax certificate that is valid for 5 years only. As per the data shared by RTO, a total of 174 government vehicles were scrapped by March 31, 2023. The Green Tax element has given a boost to car second-hand market in city. The market has maintained consistency as local dealers and well-known brands are cashing in on the re-sale car market. Car sellers are using the opportunity by selling cars to first time buyers who opt for small and entry level cars for learning driving and family use. People are conscious of driving on the city roads and hence opt for used car to get accosted to driving and hone their skills and thereafter migrate to brand new four-wheelers.
 
Second-hand car dealer Sameer Rai stated that mostly small families, students and working couples prefer to buy a second-hand car as it offers them value for money. Also, they prefer buying in cash so they don't have to worry about the installments. They use it for a year or two and then re-sale the car saving a lot of their hard earned cash. Those opting for a brand new car are mostly car owners who have developed confidence in driving and are second time buyers. At present, Rai said, a dealer on an average sells 10 vehicles per month.