The Union Ministry of Road Transport and Highways said on Wednesday that up to 25 percent rebate in toll tax (road tax) under the National Vehicle Scrap Policy will be given in the purchase of new vehicles for scrapping old vehicles in the states and union territories.
New Delhi. The Union Ministry of Road Transport and Highways said on Wednesday that up to 25 percent rebate in toll tax (road tax) will be given under the National Vehicle Scrap Policy in the purchase of new vehicles for scrapping old vehicles in the states and union territories. The vehicle scrap policy proposes a mechanism to motivate vehicle owners to discard old and polluting vehicles that are bad for the environment, the ministry said in a release.
The ministry said that this exemption will be given to the vehicle owners on the basis of the certificate obtained on depositing the vehicle for scrap . This concession is up to 25 percent in case of non-transport (personal) vehicles and up to 15 percent in case of transport (commercial) vehicles. in case of 15 years.
The Union Ministry of Road Transport and Highways said that in the Vehicle Scraping Policy, a system has been proposed to give incentives to the vehicle owners who discard old and polluting vehicles. Motor Vehicle Tax exemption will be provided for new vehicle registrations on production of Certificate of Deposit as incentive for scrapping. The Certificate of Deposit will be issued by the registered vehicle scrapping unit.
The ministry said that this exemption will be up to 25 percent for non-transport (personal) vehicles. Whereas for commercial vehicles, this discount will be up to 15 percent. This exemption will be available for 8 years for commercial vehicles, and 15 years for personal vehicles, the release said.
The Ministry of Road Transport and Highways has said in a notification that these new rules will be called the Central Motor Vehicles (24th Amendment) Rules, 2021 and will be effective from April 1, 2022. The notification states that commercial vehicles will not get any exemption in road tax after 8 years. Similarly, road tax exemption will not be available to personal vehicles after 15 years.
Under the National Automobile Scrappage Policy, launched by Prime Minister Narendra Modi in August this year, it will be mandatory for heavy commercial vehicles to undergo fitnet testing from April 1, 2023. For other categories of vehicles, it will be mandatory from June 1, 2024 in a phased manner.
