Government Offers 25% Road Tax Rebate On Vehicles Bought After Scrapping Old Ones

Aiming to incentivise scrapping of old vehicles, the Government has said that it will provide up to 25 per cent rebate on road tax for those automobiles which are purchased after getting old vehicles junked.

Under the new National Automobile Scrappage Policy, which has been brought in by the Ministry for Road Transport and Highways, the concession is up to 25 per cent for personal vehicles while for commercial vehicles, it is up to 15 per cent.

In addition to this, concessions for personal vehicles will be available for up to 15 years while for commercial vehicles the concession will be available for up to eight years.

The concession will be given for those vehicles which are registered against submission of a “certificate of deposit”. This certificate will be issued by a registered vehicle scrapping facility.

The incentives have been offered under the newly formulated policy, to encourage people to discard their old and polluting vehicles, which require greater maintenance.

The ministry said in a notification that the new scrapping rules will be called the Central Motor Vehicles (Twenty fourth Amendment) Rules, 2021, and these will come into effect from April 1, 2022.