Karnataka's green tax collection exceeds conservation spending significantly

Karnataka has collected ₹421.13 crore from a green tax over the past five years. This tax is charged on older vehicles to reduce pollution and promote clean transportation. However, only ₹51.66 crore of this amount has been spent on environmental conservation, raising concerns about how the funds are used. The green tax applies to non-transport vehicles older than 15 years and transport vehicles older than seven years. For two-wheelers, the fee is ₹250, while other personal vehicles incur a charge of ₹500. Commercial vehicles are taxed at ₹200 annually. Transport Minister Ramalinga Reddy noted that annual collections from the green tax have varied between ₹70.08 crore and ₹97.62 crore. However, the spending on environmental initiatives has been significantly lower, with just ₹8.95 crore allocated in 2021-22, despite a collection of ₹91.31 crore. A senior official from the Transport Department explained that the green tax is meant to discourage high-emission vehicles. They acknowledged the lower past allocations but mentioned an increase in spending in recent years. However, they did not provide details on the specific uses of the funds. Experts are highlighting the mismatch between the taxes collected and the money allocated for environmental projects. They argue that more of the green tax revenue should go toward infrastructure improvements and pollution control measures. The lack of transparency over fund usage is also a concern. With the government aiming to reduce pollution and promote cleaner transport, experts urge that green tax funds need to be used more effectively to support these goals.