HP High Court restrains Shimla MC from charging Green Tax

The Himachal Pradesh High Court today restrained the Shimla Municipal Corporation from levying Green Tax on vehicles from outside the town at entry points.
A division bench, comprising Acting Chief Justice R B Misra and Justice Surinder Singh, said the tax cannot be collected at this stage on the entry of vehicles in Shimla town, "without the permission of National Highway Authorities".
"The barrier for collecting tax, levy by the respondent corporation on entry of vehicles in Shimla town, without the permission of National Highway Authorities and in the absence of quid pro quo cannot be permitted at this stage," the Bench said.

"Till the permission is obtained from National Highway Authorities and parking facilities are made available, no obstruction of any kind to collect green tax or levy will be made by the Municipal Corporation, forthwith," the court said.
The Bench fixed the next hearing on March 25 and asked the respondents to file the reply.
Shimla Municipal Corporation had imposed Green Tax on entry of vehicles registered outside the town on February 20, last year to mobilise resources and reduce congestion.
The Green Tax was being charged at the rate of Rs 100 for two wheelers, Rs 200 for cars and jeeps, Rs 300 for mini trucks and similar vehicles and Rs 500 for trucks and buses at four entry points to generate revenue of Rs 6-crore annually.