To encourage the disposal of old vehicles, the government has announced a 25 per cent rebate on road tax on vehicles purchased with old vehicles in the bin.
Under the new national automobile scrapage policy introduced by the Ministry of Road Transport and Highways, the offer is up to 25 per cent for personal vehicles and up to 15 per cent for commercial vehicles.
Apart from this, offers for personal vehicles are available for up to 15 years and commercial vehicles for up to eight years.
Concession will be given to registered vehicles against submission of “Certificate of Deposit”. This certificate will be issued by the registered vehicle scraping facility.
These incentives are provided under a newly designed policy to encourage people to ignore old and polluting vehicles that require excessive maintenance.
The new scraping rules, known as the Federal Motor Vehicles (Twenty-fourth Amendment) Rules, 2021, will come into force on April 1, 2022, the ministry said in a statement.