Chandigarh: Scrap old vehicle, get incentive

Dushyant Singh Pundir

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Chandigarh, March 21

The UT Administration has decided to grant a rebate of up to 25 per cent on the road tax on the registration of a new vehicle under the National Vehicle Scrappage Policy from April 1.

The Administration has decided to implement the notification issued by the Ministry of Road Transport and Highways regarding provision of concession in the motor vehicle tax on the purchase of a new vehicle against submission of the certificate of deposit (CD), which will be issued by the registered vehicle scrapping facility (RVSF) to the owner of a vehicle when he/she deposits the vehicle with the RVSF for scrapping.

Pradhuman Singh, Director, Transport, said, “Concession in the road tax will be provided by the UT in case the vehicle is registered against the submission of the CD.”

The concession in tax up to 25 per cent would be given in case of non-transport vehicles and up to 15 per cent in case of transport vehicles. However, the concession would be available up to eight years in case of transport vehicles and up to 15 years in case of non-transport vehicles and there would be no concession in the motor vehicle tax in case of transport vehicles after eight years and in case of non-transport vehicles after 15 years. For providing the concession, these periods would be reckoned from the date of the first registration in both cases.

According to the National Vehicle Scrappage Policy, commercial vehicles aged over 15 years and passenger vehicles aged over 20 years would have to be mandatorily scrapped if these do not pass the fitness and emission tests.

The policy extends many benefits which can help reduce the price of new vehicles such as a manufacturer can give up to 5 per cent discount for buying a new vehicle, zero registration fee on the purchase of a new vehicle, owners can receive scrap value equivalent of 4 to 6 per cent of ex-showroom price of a new vehicle and the states can give up to 25 per cent and 15 per cent rebate on the road tax for personal and commercial vehicles, respectively.

According to the Ministry of Road Transport and Highways, India has 2.1 crore vehicles older than 20 years.

Incentives for scrapping old vehicles

• Manufacturers can give up to 5 per cent discount for buying new vehicles
• Zero registration fee on buying new vehicle
• Owners can receive scrap value equivalent of 4 to 6 per cent of ex-showroom price of a new vehicle

Get Concession in motor vehicle tax

• Up to 25 per cent for non-transport vehicles (available up to 15 years)
• Up to 15 per cent for transport vehicles (available up to eight years)