Funds under scanner: RTI questions utilisation of Green Tax in Manali

Manali’s Tourism Development Council (TDC) has come under scrutiny following disclosures obtained under the Right to Information (RTI) Act that indicate a significant portion of the Green Tax collected from tourists is being spent on salaries and administrative expenses rather than on environmental protection and tourism infrastructure, the primary objectives behind the levy.

According to information secured by Punjab-based advocate and RTI activist Kamal Anand, the TDC collected approximately Rs 14.71 crore through Green Tax over the past 21 months. However, expenditure details obtained through the RTI reveal that a substantial share of the revenue was spent on manpower. More than Rs 3.65 crore was paid as remuneration to Home Guards deployed for traffic management during the period, while nearly Rs 1 crore was spent on salaries of ex-servicemen and outsourced staff posted at Green Tax barriers.

The Green Tax, imposed under a government notification issued in May 2004, is levied on vehicles entering Manali. Tourists pay Rs 100 for two-wheelers, Rs 200 for cars and jeeps, Rs 300 for multi-utility vehicles and Rs 500 for buses. The notification envisages the use of these funds for developing tourist facilities and environmental infrastructure, including parking areas, public toilets, parks and other civic amenities.

In contrast, spending on public amenities appears limited. RTI records show that only Rs 3.67 lakh was spent on the maintenance of toilets at Aloo Ground and the Hadimba Temple area. Although the council earned an additional revenue of nearly Rs 25 lakh from parking operations, major infrastructure projects such as a foot overbridge at Ram Bagh Chowk and an escalator connecting Mall Road remain at the proposal or approval stage.

Anand said the Green Tax was introduced primarily to address environmental concerns and improve facilities for visitors. He argued that the available figures suggest the funds have been underutilised for environmental purposes and infrastructure creation. He also pointed out that tourists paying the Green Tax are entitled to free parking under the notification, but the lack of adequate parking facilities has rendered the provision largely ineffective.

The RTI activist has sought greater transparency in the functioning of the council and indicated that further RTI applications would be filed to obtain complete financial records. The disclosures have sparked fresh debate over whether the sizeable Green Tax collections are being utilised in accordance with the objectives for which the levy was originally introduced.