The Ministry of Road Transport and Highways has brought out a draft notification proposing concessions in motor vehicle tax for those who take their old vehicle for scrapping.
The notification dated March 29 invites objections and suggestions to the proposal for a period of 30 days.
The draft proposes up to 25% concession in motor vehicle tax for non-transport vehicles and up to 15% in case of transport vehicles upon submitting a “Certificate of vehicle scrapping”. The concession will be valid for a period of 15 years for non-transport vehicles and for 8 years for transport vehicles.
The concession is among the several incentives planned by the Centre, including waiver of registration fees on purchase of new vehicles, to encourage scrapping of old vehicles.
