Latest Car News in India

Wednesday, July 28, 2021

By Manoj Kumawat

Enjoy the rebate Of 25% On-Road Tax For Scrapping the Vehicles

In the Union Budget for 2021, Finance Minister Nirmala Sitharaman announced the policy for scrapping vehicles that are more than fifteen years old. Immediately after which, the Transport and Highways Minister, Nitin Gadkari, explained its details during a session in Lok Sabha, revealing the date of its implementation. However, after that all the announcements stood mentioned only in the papers, and nothing has been implemented so far in this direction. Recently the MoRTH has announced to offer the reduction of 25% in the road tax on the registration of a new car, instead of the vehicle scrapping policy.
In the draft shared with the states, it was mentioned that a certificate will be issued to the vehicles that are presented for scrapping. This certificate will offer them certain benefits on the purchase of a new vehicle. Now the Ministry of Transportation has made a change in that draft notification and has announced to offer a rebate of 25% and 15 % for personal and commercial vehicles.
According to the new notification, any vehicle that applies for “Certificate of Vehicle Scrapping” will be eligible to receive a rebate of 25% in the road tax. For commercial vehicles, this rebate will be up to 15%.
It would be interesting to know that in western countries the vehicle scrappage policy gets effective once the lifecycle of a vehicle is accomplished. The working efficiency of passenger vehicles is expected to be up to 20 years, and for commercial vehicles, it is up to 15 years. After these vehicles turn old and start polluting the atmosphere. After completion of their life-cycle, these vehicles are sent to the scrapyard for dismantling. In India, there is no such policy to look after these vehicles. Most of them are either running on roads and polluting the environment. 

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