The Union government on March 30 issued a draft notification that proposes to offer up to 25 percent concession on motor vehicle tax for all vehicles purchased along with a certificate of vehicle scrapping.
As per the draft notification issued by the Ministry of Road Transport and Highways, personal vehicles purchased with a certificate of vehicle scrapping will be given a concession of 25 percent on motor vehicle tax, while commercial vehicles will be given a concession of 15 percent.
The tax 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 said.
The government has invited suggestions from various stakeholders on the subject for a period of 30 days. The rules are likely to come into effect from October 1.A certificate of vehicle scrapping will be issued to vehicles owners when they scrap their vehicles older than 15 years, the government said.