21 states and UTs provide incentives to encourage the dumping of outdated cars
NEW DELHI: 21 states and union territories, including Bihar, MP, UP, Haryana, Karnataka, Maharashtra, Gujarat, Punjab, and Kerala, have announced concessions in motor vehicle or road tax of up to 25% on buying a new private vehicle in lieu of scrapping old ones, and up to 15% for commercial vehicles. This comes after the Center made it mandatory for states to promote the scrapping of old and unfit vehicles.
About 70,000 outdated cars have been willingly demolished so far, yet a significant portion of them are held by federal or state governments. Only one state/UT, Delhi, requires that gasoline and diesel cars older than ten and fifteen years, respectively, be destroyed and automatically deregistered.
When registering commercial or transport vehicles after destroying older ones, 17 out of 11 states and UTs have been informed of a 15% road tax reduction, according to information provided by TOI.
Twelve states provide a 25 percent road tax credit for private automobiles. Uttarakhand offers a 25% discount or Rs 50,000, whichever is less, whereas Haryana offers a 10% rebate or 50% of the scrap value. According to the price of a new private vehicle, Karnataka offers a predetermined road tax credit of, say, Rs 50,000 for cars that cost more than Rs 20 lakh. A 25% discount is available in Puducherry, or Rs 11,000, whichever is less.
According to authorities from the Road Transport Ministry, since the government encouraged voluntary car scrapping, 37 registered scrapping facilities, or RVSFs, have been operationalized; now, 52 of these facilities are operating in 16 states and Union territories. Similarly, 52 automated testing stations (ATS) located in 11 states and U.T. are operational for assessing the suitability of automobiles.
According to a ministry official, “there is special focus on increasing the number of RVSFs and ATS so that people can access them easily.”
