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Explainer: Green tax dynamics in hills

As Uttarakhand goes the Manali way, the focus is again on what the funds are ultimately used for

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Green Tax Barrier at Manali. File Photo

From December 1, Uttarakhand is set to impose green tax on vehicles coming from other states, “with a view to controlling pollution, protecting the environment, and promoting cleanliness”. Different rates have been fixed — Rs 80 for small vehicles, Rs 250 for small cargo vehicles, Rs 140 for buses, and between Rs 120 and Rs 700 for trucks, depending on their weight. The move rings a familiar bell in Himachal Pradesh. Tourism green tax was imposed in Manali in 2004 to fund environmental causes and tourism infrastructure, even as the proposal to impose a similar tax for vehicles from outside the state entering Shimla has been pending for almost a decade.

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