Govt proposes up to 25% tax concession on new vehicles if owners submit scrappage certificate

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.