Apart from scrap policy, the government has also approved the proposal to impose new green tax on old vehicles.
Scrappage policy: The Central Government has taken several decisions to reduce the pollution of vehicles from the roads and to remove old vehicles. The Ministry of Road Transport and Highways Ministry has approved the policy of destroying old vehicles. Apart from this, the government has also approved the proposal to impose a new green tax on old vehicles.
Under the new scrap policy, it will be easier to destroy vehicles older than 15 years. Under this rule, 15-year-old vehicles parked in government departments will come first.
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The rules will apply to both the central and state government. Notification will be released soon about this. The rules will come into force from April 1, 2022 only after the approval of the state governments. Currently, transport and personal vehicles have been kept away from scrap policy.
Scrappage policy benefits
– will help reduce pollution and improve road safety.
– Increased demand for new vehicles will improve the health of the auto industry.
– Government wants to promote CNG, electric vehicle.
– Lower fuel consumption will also help in reducing oil import bill.
Exemption in registration of new car (Car Registration)
Under the scrap policy, the old car will have to be sold to the scrap center. After this, a letter of appreciation will be received. By showing this, the registration of new car buyers will be done for free. It is estimated that about 2.80 crore vehicles will come under scrap policy from scrap policy.
What is Green Tax
Apart from scrap policy, the government has also approved the proposal to impose new green tax on old vehicles. State governments will ask for suggestions by issuing a notification of this proposal. It is proposed to impose a green tax on commercial vehicles older than 8 years.
The recovery of Green Tax will be done at the time of renewal of fitness certificate. Green tax on old vehicles can be up to 10-25 per cent of road tax. There will be less green tax for public transport vehicles. Agricultural vehicles such as tractors, harvesters will remain outside the purview of green tax.
Green tax preparation
How much old road tax
Commercial more than 8 10-25%
Personal 15 up to 50%
Pollution effect
Commercial vehicles account for 65-70 percent of the total pollution.
Commercial vehicles accounted for 5 percent of the total vehicles.
Vehicles made before 2000 contribute 15 percent to pollution.
Only 1 percent of the total vehicles made before the year 2000.
