Government Proposes 25 Percent Road Tax Concession For Vehicle Scrappage Policy

Along with this, people can also avail other discounts and rebates from the government as well as the manufacturer

• The government has proposed a 25 percent motor vehicle road tax concession as one of the rebates of vehicle scrappage policy. 

• The final set of rules and rebates for private vehicles will be effective from October 1. 

• Along with this, you will also get a 4 to 6 percent rebate on the ex-showroom price of a new car and 5 percent discount from the manufacturer. 

The Ministry of Road Transport and Highways (MoRTH) has proposed another incentive in support of the vehicle scrappage policy. The government has proposed 25 percent concession for private vehicles and 15 percent concession for commercial vehicles on motor vehicle tax. 

This rule along with others is proposed to come into effect from October 1 2021. These concessions will be available up to eight years for transport vehicles and up to 15 years for non transport vehicles. For transport vehicles, you have to pay motor vehicle tax on a monthly, quarterly or yearly basis. In the case of non-transport vehicles, most of the states charge the taxes for lifetime. 

Earlier in March 2021, the government also announced a 4 to 6 percent rebate on the ex-showroom price of your new car along with a 5 percent discount from the manufacturer. All these rules will be applicable when you scrap your old car and purchase a new one showing the scrappage certificate. 

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As per the vehicle scrappage policy, if your car is older than 15 years, you have to get its fitness test done at your nearest RTO (Regional Transport Office). If not cleared, then the vehicle will be illegal to ply on the road and should be scraped off immediately. Government is also going to increase the fees of these fitness tests.