PANAJI
In a bid to encourage phasing out of old, polluting vehicles the Central government has introduced incentives in the form of tax concessions on new vehicles if the owner is "scrapping" the old one.
Up to 25 per cent concession is being offered in road tax according to the new policy to encourage scrapping of old vehicles.
All States and Union Territories are being instructed to offer the concessions by a Ministry of Road Transport & Highways GSR Notification 720(E) issued on October 5 and published in the official gazette of the Government of India.
The road tax concession for commercial and transport vehicles is restricted for up to eight years and for other private non-commercial vehicles it extends for up to 15 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.
This is yet another policy adopted to cut out pollution caused by vehicles.
Earlier this year, the government of India and several State governments had introduced policies to incentivise switch over to electric vehicles as another measure to cut pollution.
