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Punjab Govt okays vehicle scrappage policy

Ruchika M Khanna Chandigarh, January 6 The state government today gave a nod to the policy for scrapping of old vehicles, transport and non-transport vehicles. Those scrapping their old vehicles will get a rebate on the motor vehicle tax (MVT)...
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Ruchika M Khanna

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Chandigarh, January 6

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The state government today gave a nod to the policy for scrapping of old vehicles, transport and non-transport vehicles. Those scrapping their old vehicles will get a rebate on the motor vehicle tax (MVT) from 15 to 25 per cent.

Rebate of 15-25% on motor vehicle tax

  • Those scrapping old vehicles (transport and non-transport) will get a rebate on the motor vehicle tax from 15 to 25%
  • A total of 1.28 crore vehicles have been registered in the state to date and nearly one-third of them have been registered 12-15 years ago

The state policy is in line with the Vehicle Scrapping policy of the Ministry of Road Transport and Highways.

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Transport vehicles can be scrapped up to eight years while non-transport vehicles can be scrapped up to 15 years from the date of registration.

Those opting to scrap transport vehicles before completing eight years post registration will get a rebate on MVT of up to 15 per cent and non-transport vehicle owners will get a rebate of up to 25 per cent.

Sources said there were thousands of vehicles plying in the state beyond eight years (transport vehicles) and 15 years (non-transport vehicles).

A total of 1.28 crore vehicles have been registered in the state to date and nearly one-third of them were registered 12-15 years ago.

Though the policy does not mention about banning of vehicles plying over 15 years since the date of registration, sources said they would be barred eventually. At present, re-registration of diesel vehicles, which have been in service for the past 15 years, was being discouraged.

And re-registration of personal vehicles was being done for five years.

A senior official of the Transport Department said, “So far, the policy states that scrapping is not mandatory. The national capital has already banned plying of old vehicles and other states will also follow suit.”

Transport Minister Laljit Singh Bhullar said, “The policy has been brought in to ensure that only road worthy vehicles ply. This policy will lead to reduction in road accidents, which claim thousands of lives every year.”

In 2021, as many as 4,589 lives were lost and 2,032 people suffered injuries in 5,871 road accidents.

Traffic Adviser Navdeep Asija said this policy would help to get rid of lakhs of vehicles lying in the police stations as case properties. He said, “The government has started auction of vehicles lying in the police stations. Under this policy, we will be able to get the old vehicles scrapped and use the rebate on MVT to buy new vehicles for the Police Department.”

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