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State

Govt offers exemption in tax under vehicle scrappage policy

Friday, 17 November 2023 | PNS | DEHRADUN    

The State government will give exemption to old vehicle owners from motor vehicle tax and outstanding motor vehicle tax on the vehicle at the time of registration of new vehicles. The government has taken this decision to encourage the scrapping of old, unfit and ill-maintained vehicles under the Vehicle Scrappage Policy of the Ministry of Road Transport and Highways (MORTH), said the regional transport officer (Administration) Sunil Sharma.

He said that the government will provide a concession of 25 per cent in tax or Rs 50,000, whichever is the lesser amount, during the registration of a new private vehicle after the scrapping of the old vehicle. For non-private vehicles, the government will provide an exemption of 15 per cent on the transport vehicle tax under Uttarakhand Motor Vehicle Taxation Reforms Act 2003. The RTO said that the government will also provide a 100 per cent exemption on outstanding tax and penalties after scrapping of vehicles registered in the department before 2003. For the scrapping of vehicles registered from 2003 to 2008, the government will provide a 100 per cent exemption on penalties but only a 50 per cent concession on outstanding tax. 

On the scrapping of vehicles registered after 2008, the government will provide a 50 per cent exemption on penalties on the said vehicles and zero concession on the outstanding tax, said Sharma. He also informed that to get an exemption in motor vehicle tax, the new vehicle should be of the same category as the scrapped vehicle. It will also be mandatory for the vehicle owner to obtain a certificate from the registered vehicle scrapping facility centre and present the said certificate in the respective transport office to avail benefits on the registration of the new vehicle, added Sharma. He also said that to avail the exemption after the scrapping of old vehicles, it will be mandatory for the owner to deposit the remaining dues and present the necessary certificate in the transport office. The owners can avail these benefits until October 2024, added Sharma.

He said that such vehicles are one of the major contributors to environmental pollution and this policy was introduced to mitigate this problem. It is a great initiative by the ministry and the State government regarding pollution control and vehicle management. He said that the efficient implementation of the policy will boost demand for safe, technologically updated and environment-friendly vehicles in the State.

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