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New Delhi : 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 line with the above, Union Ministry of Road Transport & Highways ( MoRTH) on October 5, 2021, issued a GSR Notification 720(E)  in the Gazette of India, which shall come into force from April 1, 2022.

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

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

The concession shall be available up to eight years, in case of transport vehicles, and up to fifteen years, in case of non-transport vehicles, according to a PIB release.