The cost of registering vehicles in Himachal Pradesh is set to increase as the state introduces a green tax on both new and old vehicle registrations. The green fee, which was initially announced in 2023, will now be implemented after the Himachal Pradesh Transport Department resolved software issues that had delayed its collection. The green tax will be charged in addition to the existing registration fees, with amounts ranging from Rs 500 to Rs 4,000, depending on the type of vehicle.
Before enforcing the new rule, the Transport Department has sought public suggestions and objections. Citizens have one week to submit their feedback, after which the department will review the inputs and finalize the policy. The green tax will be added to the current registration fees, which are calculated based on the total cost of new vehicles and the insured value for older vehicles. For older vehicles, an additional 3% tax is applied based on the price recorded in the insurance.
The revenue generated from the green fee will be allocated to environmental and road safety initiatives, reflecting the state’s commitment to reducing its environmental footprint. While the fee will apply to all types of vehicles, the exact amount will depend on the vehicle’s category, with private, commercial, and heavy vehicles subject to different rates.
This initiative is a key step in Himachal Pradesh’s efforts to address environmental concerns and enhance road safety. The decision was taken last year, but technical challenges in the department’s software delayed its implementation until now.
Once the public consultation process is complete, the green tax will become mandatory for all vehicle registrations in the state. The Transport Department has assured that the feedback will be carefully considered before moving ahead with the full implementation of the fee.
