New Delhi, Oct 6 (Bureau) People will be rewarded for discarding their vehicles with the government offering incentives under new scrappage policy. Personal vehicle owners would get as much as 25 per cent concession in motor vehicle tax for choosing to scrap their vehicles against submission of certificate of deposit. Road Transport and Highways Ministry has proposed a system of incentives to nudge vehicle owners to get rid of their old and polluting vehicles. “In line with the above, the Ministry of Road Transport & Highways has issued a GSR Notification 720(E) dated 05.10.2021, in the Gazette of India, which shall come into force from the 1st day of April, 2022,” an official release said.
As an incentive for scrapping, concession is stipulated in the motor vehicle tax for a vehicle registered against submission of “Certificate of Deposit”, which is issued by a Registered Vehicle Scrapping Facility. Accordingly, upto 25 per cent concession in motor vehicle tax would be given in case of non-transport (personal) vehicles, and upto 15 per cent in case of transport (commercial) vehicles. “The concession shall be available upto 8 years in case of transport vehicles, and upto 15 years in case of non-transport vehicles,” the press release read.