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Government notifies concessions under the Vehicle Scrapping Policy - (07 Oct 2021)

Motor Vehicles

The Ministry of Road Transport and Highways has issued a Notification 720(E) dated 5th October, 2021, in the Gazette of India, which shall come into force from the 1st day of April, 2022. In the vehicle scrapping policy, it is proposed to have a system of incentives to nudge vehicle owners to discard old and polluting vehicles, which have higher maintenance and fuel consumption costs. In the Vehicle Scrapping Policy, it is proposed to have a system of incentives and disincentives to nudge vehicle owners to discard old and polluting vehicles, which have higher maintenance and fuel consumption costs.

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. This concession is as below:

(i) upto twenty five per cent, in case of non-transport (personal) vehicles, and

(ii) upto fifteen per cent, in case of transport (commercial) vehicles:

The concession shall be available upto eight years, in case of transport vehicles, and upto fifteen years, in case of non-transport vehicles.

As regards disincentives, there will be:

I. Increase in the fee for conducting fitness test and renewal of fitness certificate for motor vehicles more than 15 years old,

II. Increase in the fitness certification fee for transport vehicles more than 15 years old, and

III. Increase in the renewal of registration fee for personal vehicles (non transport vehicles) more than 15 years old.

Tags : SCRAPPING POLICY   VEHICLES   NOTIFICATION  

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