Transport minister Kailash Gahlot said the policy aimed at encouraging the scrapping of old, polluting vehicles and promote the use of newer, cleaner vehicles. "By offering tax concessions, we hope to make it easier for vehicle owners to transit to more environment-friendly options," Gahlot said.
According to the proposal, govt will give a concession in the motor vehicles (MV) tax for the registration of new transport and non-transport vehicles on the submission of a certificate that an old vehicle was handed over for scrapping at a registered vehicles scrapping facility. However, one would need to buy a new vehicle in the same category as the one being scrapped to become eligible for the discounts.
While a 20% rebate on the MV tax will be available on non-transport new petrol, CNG and LPG vehicles, 15% concession will be given on new diesel vehicles. For transport vehicles, the amount of rebate will be 15% on new petrol, CNG and LPG vehicles and 10% on each diesel vehicle. Govt said that the total MV tax concession cannot exceed 50% of the scrap value in both cases.
The validity of the certificate of deposit would be three years and it can be electronically traded, the statement added.
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