The Ministry of Road Transport and Highways has formulated the Vehicle Scrapping Policy that includes a system of incentives/dis-incentives for creation of an ecosystem to phase out older, unfit polluting vehicles across the country. The policy targets scrapping of unfit and polluting vehicles strictly based on their fitness ascertained through Automated Testing Station.

GSR Notification 29(E) dt 16.01.2023 provides that Certificate of registration for vehicles owned by Central, State and UT governments and their Departments, Local government (Municipal Corporations or Municipalities or Panchayats), State Transport Undertakings, PSUs and other Autonomous bodies with the Central Government and State Governments, shall not be renewed after the lapse of fifteen years.

Under the vehicle scrapping policy, as per GSR 720(E) dated 05.10.2021, vehicle owners are eligible for Concession in motor vehicle tax of up to 25% for non-transport vehicles and up to 15% for transport vehicles which are purchased against Certificate of Deposit. Implementation of the provision comes under the purview of State/UT Governments.

So far, 15 states/UTs have announced concessions in the Motor vehicle Tax against the Certificate of Deposit. These States are Bihar, Madhya Pradesh, Rajasthan, Assam, Jharkhand, Chandigarh, Odisha, Uttar Pradesh, Haryana, Karnataka, Maharashtra, Punjab, Mizoram, Chhattisgarh and Kerala.

The fees for conducting fitness test of Vehicles (both manual and automated) are administered as per rule 81, revised vide GSR 714(E) dated 04.10.2021, of the Central Motor Vehicles Rules, 1989. Further, MoRTH has not issued any guidelines/instructions to States regarding imposition of Green Tax.

This information was given by the Union Minister of Road Transport and Highways, Shri Nitin Gadkari in a written reply to the Lok Sabha today.

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