'Clear Mismatch': Karnataka Collects Rs 421 Crore As Green Tax On Vehicles, Spends Just Rs 51 Crore On Environment

In a glaring example of fiscal mismatch and policy lip service, the Karnataka Transport Department has collected a staggering Rs 421.13 crore in green tax over the past five years, The Hindu reported.

Yet shockingly, only Rs 51.66 crore, only 12 per cent, has been directed toward the very purpose this tax was created for which was environmental conservation and sustainable transport.

Introduced to discourage the use of ageing, polluting vehicles, the green tax is levied on non-transport vehicles older than 15 years and transport vehicles over seven years.

Two-wheeler owners pay Rs 250, personal vehicle owners Rs 500, and commercial vehicles are charged Rs 200 per annum. Yet despite this consistent revenue stream, the state’s investment in actual green initiatives has been paltry, bordering on negligent.

In 2021-22, for instance, the government collected Rs 91.31 crore but allocated a meagre Rs 8.95 crore. Even in the "best" year, 2022-23, only Rs 22.82 crore was earmarked out of Rs 70.08 crore collected.

A senior transport official, when pressed, offered vague assurances. “Various awareness campaigns have also been undertaken under this initiative,” the official said, without providing a single detail on fund utilisation.

Experts are sounding the alarm. “There is a clear mismatch between the green tax collected and the funds allocated for environmental initiatives", said transport expert MN Srihari.

“If the government is serious about tackling pollution and promoting clean transportation, a higher proportion of the collected revenue must be invested in infrastructure, electric vehicle incentives, and pollution control measures,” he added.

The Karnataka government continues to talk green while spending the green elsewhere. The ‘green tax’ risks becoming just another bureaucratic scam under the garb of environmental concern.