Uttarakhand Introduces Green Tax on Out-of-State Vehicles

Uttarakhand Green Tax: Vehicle-Wise Charges and Exemptions Explained

In a significant move towards environmental sustainability, the Uttarakhand government has announced the implementation of a green cess on vehicles entering the state from other parts of India. 

Set to come into effect from December 2025, this policy aims to tackle air pollution and generate funds for environmental conservation across the Himalayan state.

The new taxation system will utilize advanced ANPR (Automatic Number Plate Recognition) camera technology at state borders, ensuring seamless and automated collection of taxes. With an expected annual revenue of ₹100-150 crore, Uttarakhand is taking a bold step towards cleaner air and sustainable development.

Quick Facts:

  • Implementation Date: December 2025.
  • Applicable To: Vehicles registered in other states entering Uttarakhand.
  • Collection Method: Automated via ANPR cameras.
  • Expected Revenue: ₹100-150 crore annually.
  • Purpose: Environmental conservation and pollution control.

What is Uttarakhand's New Green Tax Policy?

The Uttarakhand green tax is an environmental tax imposed on vehicles registered outside the state that enter Uttarakhand. This initiative is part of the state government’s broader strategy to maintain the ecological balance of the region, which attracts millions of tourists and commercial vehicles annually.

Unlike traditional toll systems, this green tax will be collected automatically through ANPR cameras installed at border checkpoints. Vehicle owners will be charged based on their vehicle category, with the amount directly deducted through the automated system. The policy reflects Uttarakhand’s commitment to preserving its natural beauty while managing the environmental impact of increasing vehicular traffic.

The tax applies specifically to interstate vehicles and is designed to create accountability among vehicle owners for their environmental footprint when traveling through the ecologically sensitive Himalayan region.

Green Tax Rates for Different Vehicle Categories

The Uttarakhand government has structured the green tax based on vehicle type and size, ensuring proportional charges according to emission levels and road usage. Here’s a complete breakdown of the tax structure:

 

Vehicle Category

Green Tax Amount

Applicability

Sedan / Car

₹80

Per entry into Uttarakhand

Bus

₹140

Per entry into Uttarakhand

Truck (Medium)

₹280

Per entry into Uttarakhand

Big Trucks / Heavy Vehicles

₹120 – ₹700

Per entry (varies by vehicle capacity)

Two-Wheelers (Petrol/Diesel)

₹80

Per entry into Uttarakhand

Electric Vehicles

Exempt

No tax applicable

CNG Vehicles

Exempt

No tax applicable

Emergency Vehicles

Exempt

Ambulances, fire brigade, etc.

Two-Wheelers and Light Vehicles

For sedan cars and similar light motor vehicles, the green tax has been set at ₹80 per entry. This category covers most private passenger vehicles that enter Uttarakhand from neighboring states for tourism, business, or personal reasons.

Two-wheelers have been given special consideration in this policy. The government recognizes the growing adoption of eco-friendly transportation and has exempted certain categories to encourage sustainable mobility.

Commercial Vehicles (Buses and Trucks)

Commercial transport bears a higher environmental burden, and the tax structure reflects this reality:

  • Buses: ₹140 per entry
  • Small to Medium Trucks: ₹280 per entry
  • Large Trucks and Heavy Commercial Vehicles: ₹120 to ₹700 per entry (based on vehicle capacity and type)

The tiered pricing for heavy trucks ensures that larger vehicles, contributing more to road wear and emissions, are charged proportionally higher amounts. This structure aims to balance commercial needs with environmental responsibility.

Vehicles Exempt from Green Tax

The Uttarakhand government has shown environmental awareness by exempting specific vehicle categories:

  • Electric Vehicles (EVs): All two-wheelers and four-wheelers running on electric power
  • CNG Vehicles: Vehicles operating on Compressed Natural Gas
  • Emergency Vehicles: Ambulances, fire brigade vehicles, and other emergency response vehicles

These exemptions encourage the adoption of clean fuel alternatives and ensure that essential services remain unaffected by the new taxation policy.

Why Has Uttarakhand Implemented This Green Tax?

Environmental Sustainability Goals

Uttarakhand’s unique geographical position as a Himalayan state makes it particularly vulnerable to environmental degradation. The state hosts numerous pilgrimage sites, tourist destinations, and sensitive ecological zones that experience heavy vehicular traffic throughout the year.

The influx of vehicles from other states, especially during peak tourist seasons, contributes significantly to air pollution, road congestion, and environmental stress. The green tax serves as both a regulatory measure and a revenue-generation tool to address these challenges.

By implementing this tax, the government aims to:

  • Reduce air pollution levels across major cities and tourist destinations.
  • Create awareness about environmental responsibility among vehicle owners.
  • Fund pollution control initiatives and environmental. conservation projects
  • Support sustainable tourism practices.
  • Maintain the pristine quality of Uttarakhand’s natural environment

Revenue Generation for Pollution Control

The financial aspect of this policy is equally important. The Uttarakhand government estimates that the green tax will generate ₹100 to ₹150 crore annually in additional revenue.

This substantial fund will be specifically allocated to:

  • State Pollution Control Board: Strengthening monitoring systems, purchasing advanced pollution measurement equipment, and expanding regulatory capabilities
  • Environmental Cleaning Initiatives: Waste management projects, river cleaning drives, and forest conservation programs.
  • Air Quality Improvement: Installing air purifiers in congested areas, creating green belts, and implementing emission control measures
  • Infrastructure Development: Building eco-friendly facilities and promoting sustainable transport alternatives

This dedicated funding ensures that the money collected directly benefits environmental conservation, creating a positive cycle of responsibility and action.

Why Has Uttarakhand Implemented This Green Tax?

Environmental Sustainability Goals

Uttarakhand’s unique geographical position as a Himalayan state makes it particularly vulnerable to environmental degradation. The state hosts numerous pilgrimage sites, tourist destinations, and sensitive ecological zones that experience heavy vehicular traffic throughout the year.

The influx of vehicles from other states, especially during peak tourist seasons, contributes significantly to air pollution, road congestion, and environmental stress. The green tax serves as both a regulatory measure and a revenue-generation tool to address these challenges.

By implementing this tax, the government aims to:

  • Reduce air pollution levels across major cities and tourist destinations.
  • Create awareness about environmental responsibility among vehicle owners.
  • Fund pollution control initiatives and environmental. conservation projects
  • Support sustainable tourism practices.
  • Maintain the pristine quality of Uttarakhand’s natural environment

How Will the Green Tax Collection Work?

The Uttarakhand government has invested in modern technology to make tax collection efficient and hassle-free. ANPR (Automatic Number Plate Recognition) cameras have been installed at all major entry points along the state borders.

These intelligent cameras automatically:

  • Capture vehicle number plates as vehicles cross into Uttarakhand.
  • Identify the vehicle’s registration state.
  • Determine the applicable tax category.
  • Record entry time and date.
  • Process payment through the integrated system.

This technology eliminates the need for physical toll booths or manual verification, ensuring smooth traffic flow at border checkpoints while maintaining accurate tax collection records.

Automated Payment Process

Once the ANPR system identifies an out-of-state vehicle, the green tax is automatically processed. The payment will be deducted from the vehicle owner’s linked account or payment method registered with the transport authority.

Vehicle owners are advised to ensure their contact details and payment information are updated with their respective state transport departments to avoid any complications. The automated system will send instant notifications confirming the tax deduction, providing transparency and record-keeping for travelers.

24-Hour Re-Entry Exemption Rule

Understanding the practical needs of travelers and commercial operators, the Uttarakhand government has introduced a sensible exemption: if a vehicle re-enters Uttarakhand within 24 hours of its previous entry, no additional green tax will be charged.

This provision is particularly beneficial for:

  • Tourists are making day trips to border areas.
  • Commercial vehicles with routes that cross state boundaries multiple times.
  • Residents of border districts who frequently travel between states.
  • Emergency and essential service vehicles.

The 24-hour window ensures that the tax targets long-distance and high-frequency users rather than penalizing routine cross-border movement.

Expected Revenue and Its Utilization

The projected annual revenue of ₹100-150 crore represents a significant financial resource for Uttarakhand’s environmental initiatives. This estimation is based on:

  • Average daily vehicle entries from other states.
  • Tourist season traffic patterns.
  • Commercial vehicle movement data.
  • Historical traffic analysis at state borders.

The State Pollution Control Board will be the primary recipient of these funds, enabling them to:

  • Establish more air quality monitoring stations across the state.
  • Conduct regular environmental impact assessments.
  • Implement stricter emission control measures.
  • Launch public awareness campaigns about pollution.
  • Support research on sustainable transportation alternatives.

Additionally, a portion of the revenue will fund comprehensive cleaning drives in tourist destinations, urban areas, and along major highways, ensuring that Uttarakhand maintains its reputation as a clean and green state.

Impact on Vehicle Owners and Transport Operators

For private vehicle owners, the green tax represents a modest additional cost when visiting Uttarakhand. A sedan owner paying ₹80 per entry will find this comparable to standard toll charges, but with the added benefit of contributing to environmental conservation.

Commercial operators, particularly in the transport and logistics sector, will need to factor these costs into their operational budgets. However, the automated collection system reduces time delays at borders, potentially offsetting costs through improved efficiency.

The exemption for electric and CNG vehicles provides a strong incentive for fleet operators to transition towards cleaner fuel alternatives, aligning business interests with environmental goals.

Tourists and pilgrims visiting Uttarakhand’s famous destinations should plan for this additional expense as part of their travel budget, knowing that their contribution directly supports the preservation of the natural beauty they come to experience.

How to Prepare for the New Green Tax System

Vehicle owners planning to visit Uttarakhand after December 2025 should take the following steps:

  1. Update Vehicle Registration Details: Ensure your mobile number and email address are correctly registered with your state’s transport department for receiving payment notifications.
  2. Verify Payment Methods: Check that your vehicle’s linked payment systems are active and have sufficient balance to process automated deductions.
  3. Understand Exemptions: If you own an electric vehicle or CNG vehicle, familiarise yourself with the documentation required to claim exemption.
  4. Plan Your Travel: Consider the 24-hour re-entry rule when planning trips that involve multiple border crossings.
  5. Stay Informed: Follow official Uttarakhand government announcements for detailed implementation guidelines and any updates to the policy.

For commercial operators:

  • Coordinate with your fleet management team to update all vehicle information
  • Calculate the green tax into your operational cost projections
  • Consider transitioning to CNG or electric vehicles for routes with frequent Uttarakhand entries
  • Maintain digital records of all tax payments for accounting purposes

Frequently Asked Questions

  • When does the green tax start?

The Uttarakhand green tax on out-of-state vehicles will be implemented from December 2025. All vehicles registered outside Uttarakhand entering the state after this date will be subject to the applicable tax rates.

  • Which vehicles are exempt from the green tax?

The following vehicle categories are completely exempt from the green tax:

  1. Electric vehicles (both two-wheelers and four-wheelers).
  2. CNG-powered vehicles.
  3. Emergency vehicles, including ambulances and fire brigade vehicles.

Vehicles registered in Uttarakhand are not subject to this tax as it applies only to out-of-state vehicles.

  • How is the tax collected?

The green tax is collected through an automated system using ANPR (Automatic Number Plate Recognition) cameras installed at Uttarakhand’s border entry points. When your vehicle crosses into the state, the cameras capture your number plate, identify your vehicle category, and process the payment automatically through your registered payment method.

  • What if I enter Uttarakhand multiple times in a day?

The government has implemented a 24-hour exemption rule. If you re-enter Uttarakhand within 24 hours of your previous entry, you will not be charged the green tax again. This exemption applies only to re-entries within the 24-hour window.

  • Where will the green tax revenue be used?

The entire revenue generated from the green tax, estimated at ₹100-150 crore annually, will be allocated to:

  1. The State Pollution Control Board for air quality monitoring and pollution control measures
  2. Environmental cleaning initiatives across Uttarakhand
  3. Sustainable development projects
  4. Conservation of the state’s natural resources

The funds are ring-fenced specifically for environmental purposes, ensuring transparent utilization for ecological benefit.

  • What is the Uttarakhand green tax?

Uttarakhand green tax is an environmental levy imposed by the state government on vehicles registered in other states when they enter Uttarakhand. Starting from December 2025, this tax aims to generate funds for pollution control and environmental conservation. The tax ranges from ₹80 for sedans to ₹700 for heavy trucks, collected automatically through ANPR cameras at border checkpoints.

  • How much is the green tax in Uttarakhand?

The green tax rates in Uttarakhand are:

  1. Sedan/Car: ₹80
  2. Bus: ₹140
  3. Truck: ₹280
  4. Big Trucks: ₹120 to ₹700 (based on capacity)
  5. Electric vehicles, CNG vehicles, and emergency vehicles: Exempt (₹0)
  • How is the green tax collected in Uttarakhand?

The green tax is collected through an automated ANPR (Automatic Number Plate Recognition) system. Cameras installed at Uttarakhand border entry points capture vehicle number plates, identify the registration state and vehicle type, and automatically deduct the applicable tax from the vehicle owner’s registered payment method. No manual toll booths or stops are required.

  • Do I have to pay the green tax every time I enter Uttarakhand?

No, not always. Uttarakhand has a 24-hour re-entry exemption rule. If you enter Uttarakhand, exit, and re-enter within 24 hours, you will not be charged the green tax again. The tax applies only once per 24-hour period per vehicle.

  • How will I know if my green tax has been deducted?

Once the ANPR system processes your vehicle entry and deducts the green tax, you will receive an instant notification via SMS and email to your registered mobile number and email address. The notification will include the amount deducted, date, and time of entry, and a transaction reference number for your records.

  • What happens if I don’t pay the green tax?

The green tax system in Uttarakhand is automated and mandatory. Non-payment or evasion may result in:

  1. Penalties and fines as per the Uttarakhand Motor Vehicles regulations
  2. Legal action for tax evasion
  3. Vehicle seizure in serious cases of non-compliance

Ensure your vehicle’s payment details are updated with your state transport department to avoid automatic deduction failures.

  • Is the green tax applicable to Uttarakhand registered vehicles?

No. The green tax applies only to vehicles registered in other states that enter Uttarakhand. Vehicles with Uttarakhand (UK) registration numbers are not subject to this tax, regardless of how many times they travel within the state.

  • Where will the Uttarakhand green tax money be used?

The estimated ₹100-150 crore annual revenue from green tax will be used for:

  1. State Pollution Control Board – Air quality monitoring, emission control measures
  2. Environmental cleaning initiatives – Cleaning drives in tourist areas, cities, and highways
  3. Pollution control infrastructure – Installing air purifiers, creating green belts
  4. Conservation projects – Forest protection, river cleaning, waste management

The funds are dedicated exclusively to environmental purposes.

Can I get a refund on the Uttarakhand green tax?

Generally, green tax is non-refundable as it’s an environmental levy. However, if there’s a technical error resulting in duplicate charges or incorrect deductions, you may file a complaint with the Uttarakhand Transport Department with your transaction details for review and potential refund.

  • Do tourist vehicles pay green tax in Uttarakhand?

Yes, all tourist vehicles registered outside Uttarakhand must pay the applicable green tax. This includes:

  1. Private cars coming for tourism (₹80)
  2. Tourist buses and coaches (₹140)
  3. Rental vehicles from other states (as per vehicle category)

Only electric and CNG tourist vehicles are exempt from this tax.

  • How to update payment details for the Uttarakhand green tax?

To ensure smooth automated payment:

  1. Visit your home state’s Regional Transport Office (RTO) website.
  2. Log in to your vehicle owner account using your registration number.
  3. Update your mobile number, email address, and linked payment method.
  4. Verify the details through OTP confirmation.
  5. Keep your bank account or digital wallet sufficiently funded.

Contact your state RTO helpline for assistance with updating details.

  • Is the green tax same as toll tax in Uttarakhand?

No, green tax and toll tax are different:

  1. Green Tax: Environmental levy on out-of-state vehicles, collected once per 24 hours at state borders, funds used for pollution control.
  2. Toll Tax: Road usage charge collected at toll plazas for highway maintenance, applicable to all vehicles regardless of registration.

You may need to pay both when traveling through Uttarakhand on national highways.

  • Why is Uttarakhand charging green tax?

Uttarakhand is charging green tax to:

  1. Reduce air pollution from the high influx of vehicles from other states.
  2. Generate dedicated funds (₹100-150 crore annually) for environmental conservation.
  3. Support sustainability in an ecologically sensitive Himalayan region.
  4. Encourage clean fuel adoption by exempting electric and CNG vehicles.
  5. Maintain the pristine environment that attracts millions of tourists annually.

The tax ensures that visitors contribute to preserving the natural beauty they come to experience.

Stay Informed and Travel Responsibly

Uttarakhand’s green tax initiative represents a progressive step towards environmental conservation and sustainable tourism. As December 2025 approaches, vehicle owners and transport operators should prepare for this new system while appreciating its role in preserving the natural beauty of the Himalayan state.

For the latest updates on the green tax policy, implementation guidelines, and payment procedures, visit the official Uttarakhand Transport Department website or contact your nearest Regional Transport Office.

By complying with this initiative, every visitor to Uttarakhand contributes directly to keeping the state clean, green, and sustainable for future generations. Plan your journey, understand the regulations, and be part of Uttarakhand’s environmental success story.

Travel smart. Travel green. Support Uttarakhand’s vision for a cleaner tomorrow.

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