Scrapage policy will be applicable from April 1, ready to pay green tax for old vehicle

new Delhi. The central government has approved the Scrappage Policy. After this, government vehicles that are more than 15 years old will no longer be in service. The Ministry of Road, Transport and Highways (MoRTH) has given information about this. CNBC-TV18 has said in a report that the new scrap policy will be implemented from 1 April 2021. After this, the vehicles of the government department will be removed from service on completion of 15 years. In September itself, Union Minister Nitin Gadkari had said that scrap policy is one of the major priority for the government. This step of the government will not only help in reducing air pollution, but will also help in increasing the demand in the automobile sector.

Finance Minister Nirmala Sitamaran had said in August 2019 that work is being done on the new scrap policy. On 26 July 2019, the government came up with a proposal to amend the Motor Vehicles Act, which also mentioned scraping vehicles older than 15 years. In July last year, the National Green Tribunal (NGT) lashed out at the Transport Ministry over the delay in issuing guidelines to scrap old vehicles.

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Scrapage policy is important for revival of auto sector

It is expected that after the implementation of the scrap policy, the demand for vehicles in the market will also increase, which has had a bad effect on the Corona crisis. The situation in the auto sector is already bad for almost a year before the epidemic. In such a situation, this policy will also be important for the revival of the auto sector.

Arrangement to collect green tax from old vehicles
Some difficult provisions were also discussed for those keeping older vehicles. There will also be a provision of higher fitness certificate fees on vehicles older than 15 years. It has been announced under the Green Tax Policy. The ministry has also received approval for the proposal of green tax for air polluting vehicles. This proposal will now be sent to the states once before its implementation.

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For green tax, these key things will be kept in mind:

>> Green tax can be charged at the time of renewing fitness certificate on vehicles older than 8 years. The tax rate for this will be 10 to 25 percent of the road tax.

>> If the personal vehicle is more than 15 years old, then a green tax will have to be paid at the time of renewing the fitness certificate.

>> Other public transport vehicles including buses will be charged less green tax.

>> Vehicles registered in cities with more pollution will be charged more Green Tax. This can be up to 50 percent of the road tax.

>> Alternate fuel vehicles like CNG, Ethanol etc. including hybrid, electric vehicles etc. will be exempted.

>> Vehicles used in farming and farming will also get this exemption.

>> The revenue received from the Green Tax will be kept in a separate account and will be spent on measures to reduce pollution.

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