Vehicles older than 20 years will no longer run in the country. For this, the Central Government has brought the Vehicle Scrappage Policy i.e. Vehicle Junk Policy. People can get incentives along with penalty in the Vehicle Scrappage Policy. Sources told CNBC-TV18 that the central government may waive registration fees for new vehicles to boost scrappage of older vehicles. Along with this, states can be asked to give a rebate on road tax. However, Moneycontrol does not independently verify this report.
According to the report, the government is planning to give exemption in registration charge for new vehicles to those who will scrap their old personal vehicles. With a road tax exemption, the government may ask the original equipment manufacturers (OEMs) to give a 1 to 2% discount to customers who scrap vehicles. Also, the state governments can be allowed to use green tax revenue to give road tax exemption.
This penalty will be applied in the new policy
In the Vehicle Scrappage Policy as a penalty, it is proposed to increase the charge to renew the registration of all vehicles. The SCRAPPAGE policy provides for fitness fees, green tax. You will have to pay a green tax if you have an old car. Green tax can be 10-25% of road tax. States will have the responsibility to implement this policy. Vehicle re-registration charge will increase by 10 times.
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The government will issue guidelines
According to the new policy, petrol engine vehicles older than 20 years and diesel engine vehicles older than 15 years that fail the test will be scraped. The government will issue guidelines for setting up scraping centers and automated fitness centers. Finance Minister Nirmala Sitharaman said that this policy has been brought to reduce pollution. At the same time, Road Transport Minister Nitin Gadkari said that this policy will give a boost to the automobile sector.
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The post Vehicle Scrappage Policy will also get incentives along with penalty, these benefits can be available with the rebate in Road Tax appeared first on Business Khabar.
