Good news: Scrap your vehicles and get tax rebate
The union government has decided that individuals buying new vehicles after scrapping their old ones under National Automobile Scrappage policy will be eligible for rebate on road tax.
According to the government decision, individuals scrapping their private vehicles will receive a tax rebate of 25 percent, while entities scrapping their public/commercial vehicles will receive a rebate of 15 percent. The age of private vehicles should be less than or equal to 15 years, and the age of commercial vehicles should be less than or equal to eight years.
However, measures to encourage vehicle scrapping pinch holes on the pocket of state government as it will make them devoid of revenue from road tax. Notably, in luxury category vehicles state government is charging 21 percent of the vehicle as road tax. Charging tax for interstate vehicle registration under the Union government implemented Bharat Series (BH-Series) registration also caused financial loss to state government.
Amid this, reports have emerged that fee for renewing registration of old vehicles may witness an eight-fold increase.