States Offer Tax Rebate For Scrapping Old Polluting Vehicles To Buy New Ones

Keeping in line with the centre's initiative of phasing out old vehicles, many states and union territories (UTs) have come forward to offer motor vehicle tax or road tax concessions, while buying new vehicles in lieu of scrapping old ones.

Five states have also notified a one-time waiver of pending liabilities on vehicles older than 15 years, which are scrapped at the Registered Vehicle Scrapping Facilities (RVSFs).

These moves are likely to accelerate the phasing out of old and polluting vehicles.

According to the Road Transport Ministry, Karnataka, Punjab, Madhya Pradesh, Odisha, Jharkhand, Rajasthan, Bihar, Assam, Chandigarh and Mizoram have announced a maximum rebate of 25 per cent of the road tax, in case of scrapping personal vehicles and buying new ones against them.

These states have also announced the maximum 15 per cent discount on road tax in the case of commercial vehicles.

Uttar Pradesh has announced to offer 15 per cent rebate on road tax on personal vehicles and 10 per cent on commercial vehicles, while Maharashtra has decided to offer 10 per cent rebate for scrapping both the categories of vehicles and buying new ones.

Karnataka is offering 25 per cent of the tax paid on scrapping vehicles in case of non-transport (upto 15 years) and 15 per cent in case of transport (upto 8 years).

While Maharashtra is offering 10 per cent for non-transport and transport, Odisha has offered 25 per cent for non-transport and 15 per cent for transport vehicles.

Madhya Pradesh has offered 25 per cent for non-transport and 15 per cent for transport categories, Punjab is offering 25 per cent for non-transport and 15 per cent for transport vehicles.

Haryana has offered 10 per cent of tax or 50 per cent of scrap value, whichever is less.

Jharkhand has offered 25 per cent non-transport and 15 per cent transport, while Rajasthan has offered 25 per cent for non-transport and 15 per cent for transport vehicles.

Bihar has offered 25 per cent for passenger and 15 per cent for commercial vehicles, while Assam is offering 25 per cent for non-transport and 15 per cent for transport vehicles.

Mizoram is offering 25 per cent for non-transport and 15 per cent for transport vehicles. Chandigarh is also offering 25 per cent for non-transport and 15 per cent for transport vehicles.