Transforming Roads: Ministry Doubles Rebate for Scrapping Pollutive Vehicles

The transport ministry has proposed a significant increase in tax rebates for new vehicle purchases after scrapping older, high-polluting models. This initiative aims to phase out vehicles that do not meet BS-II emission standards, supporting the country's vehicle modernization efforts.

The transport ministry is advancing its efforts to reduce vehicular pollution by proposing a substantial increase in tax rebates. The proposal suggests doubling the current tax rebate to 50% for purchasing new vehicles after scrapping those not compliant with BS-II and earlier emission standards.

Currently, new personal vehicle purchases after scrapping old ones receive a 25% discount on Motor Vehicle tax, whereas commercial vehicles get a 15% rebate. The Ministry of Road Transport and Highways has outlined in a draft notification that this higher discount will apply to both personal and commercial vehicles meeting the older BS-I emissions criteria or predating the BS norms.

To aid this transition, the Voluntary Vehicle Modernization Program is in motion. It's designed to phase out outdated vehicles through Registered Vehicle Scrapping Facilities and Automated Testing Stations, with over 60 such facilities and 75 testing stations already active across multiple states and territories.

(With inputs from agencies.)