Govt proposes concession on road tax on submitting scrapping certificate

In case the vehicle is registered against submission of 'certificate of vehicle scrapping', the concession in motor vehicle tax will be upto 25 per cent in case of non-transport vehicles

The Ministry of Road Transport and Highways on Tuesday issued draft rules regarding concession in motor vehicle tax against scrapped vehicles.

If the vehicle is registered against submission of "certificate of scrapping", the concession in motor vehicle tax will be upto 25 per cent in case of non-transport vehicles, and in the case of transport vehicles, it will be upto 15 per cent.

These concessions will be available upto eight years, in case of transport vehicles and upto 15 years, in case of non-transport vehicles and periods will be reckoned from the date of first registration.

Union minister Nitin Gadkari, while unveiling the vehicle scrapping policy in Lok Sabha said it will help improve fuel efficiency and reduce pollution.

The union government had earlier proposed the following rules:

Commercial vehicles be de-registered after 15 years in case of failure to get the fitness certificate. As a disincentive measure, increased fees for fitness certificate and fitness test may be applicable for commercial vehicles 15 year onwards from the date of initial registration.

Private Vehicles be de-registered after 20 years if found unfit or in case of a failure to renew registration certificate. As a disincentive measure, increased re-registration fees will be applicable for private vehicles 15 year onwards from the date of initial registration.

All vehicles of the Central government, state government, municipal corporation, panchayats, state transport undertakings, public sector undertakings and autonomous bodies with the union and state governments may be de-registered and scrapped after 15 years from the date of registration.

The scheme will also provide strong incentives to owners of old vehicles to scrap old and unfit vehicles through registered scrapping centres, which will inturn provide the owners with a scrapping certificate.

The ministry of road transport and highways will also promote setting up of registered vehicle scrapping facility (RVSF) across India and will encourage public and private participation for opening up of such centres.