Back in August this year, the Ministry of Road Transport and Highways (MoRTH) proposed some incentives to give the Vehicle Scrappage Policy a push. One of them talked about a rebate on the motor vehicle road tax. That has now been formalised. Here’s what you need to know:

Suppose you take your vehicle for scrapping at any of the authorised vehicle scrapping facilities. From there, you’ll get something called a “Certificate of Deposit” upon surrendering your aged vehicle for its ultimate demise.

Now, when you produce that “Certificate of Deposit” while purchasing and registering a new vehicle, you’ll get a rebate on the motor vehicle tax. This is what the government has specified:

• The buyer can get up to 25 per cent concession in the case of non-transport vehicles.
• For transport vehicles, the discount could be up to 15 per cent.

The motor vehicle tax varies from state to state. So, the rebate on a vehicle’s road tax can be more in one than the other. Obviously, there are a few terms and conditions. For example, the concession mentioned above is available for up to eight years for transport vehicles and fifteen years for non-transport vehicles.

Let’s round up the kind of incentives owners of scrapped vehicles can avail. Apart from the one mentioned above, there’s a complete waiver on the vehicle registration fee. Also, owners will get anything between 4 to 6 per cent of their vehicle’s ex-showroom price back upon surrendering their vehicle for scrapping. And, they can further expect a 5 per cent discount on the new car/motorcycle etc., they purchase. These rules for concession will come into effect from April 1, 2022.

If you add all those up, the money you save on a new automobile will be considerable. And on top of everything else, you’ll get to drive/ride a vehicle that’s not only safer for you but also the environment.