MORTH proposes tax concession on submission of Vehicle Scrapping Certificate
By Jim Gibbins - 3rd May 2021
India – Ministry of Road Transport and Highways (MORTH) has now issued draft notification rules regarding concessions on new motor vehicle taxes when older vehicles are scrapped, for consultation. (This older vehicle scrappage scheme is designed to dovetail with the new ‘Green Tax’ that charges an additional tax of up to 25% on the annual vehicle renewal fitness certificate (FC) – see ‘Green Tax’ article in T&BB India February 2021). According to the draft notification, personal vehicles purchased with a certificate of vehicle scrapping will be given a concession of 25 per cent on motor vehicle tax, while commercial vehicles will be given a concession of 15 per cent.
This concession will be for a period of eight years for commercial vehicles, while for personal vehicles the concession will be for a period of 15 years from the date of registration, the government has said.
