Green tax in Karnataka: ₹421 crore collected, but only ₹51.66 crore spent on conservation
The Hindu
The highest allocation for conservation was in 2022-23, when ₹22.82 crore was earmarked, yet this still represented only a fraction of the total revenue collected, which was ₹70.08 crore.
Over the past five years, the Karnataka Transport Department has collected a total of ₹421.13 crore in ‘green tax’, a levy aimed at discouraging the use of older, polluting vehicles and promoting environmental conservation. However, data reveals that only ₹51.66 crore of this money has been allocated for environmental conservation and sustainable transport initiatives during this period, raising concerns over fund utilisation.
The green tax is levied on non-transport vehicles older than 15 years at the time of registration renewal, and on transport vehicles older than seven years at the time of fitness certification renewal. According to Transport Minister Ramalinga Reddy’s recent statement in the Legislative Council, owners of two-wheelers are charged ₹250, while those of other personal vehicles pay ₹500. The owners of commercial vehicles are charged ₹200 per annum.
Despite the significant revenue generated from the green tax, the government’s allocation towards environmental conservation has been inconsistent.
Over the last five years, the annual green tax collection has ranged between ₹70.08 crore and ₹97.62 crore, while the allocation for environmental initiatives has been considerably lower. In 2021-22, only ₹8.95 crore was allocated despite collecting ₹91.31 crore in green tax, marking the lowest share of funds being directed towards environmental conservation.
The highest allocation was in 2022-23, when ₹22.82 crore was earmarked, yet this still represented only a fraction of the total revenue collected, which was ₹70.08 crore.
A senior official from the Transport Department said the tax discourages the use of older vehicles that contribute to higher emissions. However, when questioned about the lower allocation of funds for environmental initiatives, the official admitted that previous allocations were lower but claimed that the department has been increasing expenditure in recent years.
“Various awareness campaigns have also been undertaken under this initiative,” the official added, without specifying where the funds had been spent.
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