Vehicle Scrappage Policy Certificate: The Ministry of Road, Transport and Highways (MoRTH) has proposed an exemption in road tax on vehicles purchased under the Scrapage Policy. According to the Ministry, a 20% concession in road tax for private vehicles and 15% for transport vehicles has been proposed by the Scrapage Certificate (Certificate of Quantity) on purchasing new vehicles.

As a part of the recently introduced new Scrappage Policy, this rule is proposed to come into force from 1 October 2021. As per the notification issued by MoRTH, vehicle owners can avail up to 25% off on registration of a new private vehicle while submitting a “certificate of vehicle scraping”. At the same time, up to 15% discount will be given in case of transport vehicles. According to this notification, these exemptions will be given for eight years for transport vehicles and up to 15 years for private vehicles.

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The Transport Ministry has also sought suggestions from stakeholders on this rules by next month, after which the Ministry will issue a final notification. Explain that, earlier this month, the much-awaited vehicle scrapping policy was announced by the Union Transport Minister Nitin Gadkari in the Lok Sabha. The main purpose of this policy is to remove unfit and polluting vehicles from the road. Apart from this, it has also been claimed in this policy that the purchase of new vehicles will also increase.

Announcing the scraping policy, Gadkari said that, if vehicle owners scrap their old vehicles, they can get strong incentives, including a 25% rebate on road-tax for private vehicles and 15% for commercial vehicles. He had also stated that, among other benefits, one can also avail a discount of around 5% on the purchase of a new vehicle on showing a scraping certificate.

What is Scrapage Policy:

In this new policy, it is proposed that if any commercial vehicles older than 15 years fail to get fitness certificate, then their registration (de-registered) will be canceled. On the other hand, if more than 20 years old private vehicles are found unfit in the fitness test and are unable to get the certificate, then their registration (de-registered) will be canceled. Union Minister Nitin Gadkari said that “The new scouring policy will not only get rid of pollution but will also generate a new investment of about Rs 10,000 crore, and create more than 50,000 new jobs”.