Scrappage Policy: Will you be able to drive your 15-year-old vehicle from 1st April 2021

Srinagar, Jan 28: The much delayed and much-awaited Scrappage Policy is round the corner. It is being reported that the new policy will come into effect from 1st April 2021. The policy states that Central and State Government vehicles will be scrapped. However, there are different norms for Transport and Personal vehicles.

What happens to old transport vehicles:

Under the proposal, transport vehicles older than eight years will be charged a Green Tax at the time of renewal of fitness certificate, at the rate of 10-25 per cent of road tax. However, public transport vehicles, such as city buses, will be charged lower Green Tax. This is applicable to vehicles running yellow plates. The Scrappage Policy will allow you to retain older cars but expect heavy taxes.

What happens to personal vehicles:

Personal vehicles or vehicles sporting white plates will be allowed to go through a fitness test and will be reregistered. However, the government surely wants to ensure most of the old cars go off the road and hence have decided to impose higher fees. Personal vehicles will be charged a Green Tax at the time of renewal of the Registration Certification after 15 years. A rather high Green Tax which can be as high as 50 per cent of road tax will be levied on vehicles. The tax might be further changed depending on the state and especially in cities where pollution levels hover high.

Will CNG and LPG vehicles be taxed similarly:

We hear that the CNG and LPG powered vehicles will not be taxed as brutally as petrol and diesel-powered vehicles. Even proper hybrids and electric vehicles will be exempted from the high Green Tax and will also be allowed to reregister vehicles over 15 years old.

This move will surely be welcomed by a section of people who are sentimental about their vehicles. This move will allow them to retain their old cars. On the other hand, we also hear that the government is still working on the policy and people bringing in old cars to the scrapyard might be given tax benefits in form of waivers on road tax and so on. (India Today)