Vehicle scrappage policy to have mix of penalties, financial incentives | Budget 2021

By Administrator_ India

Capital Sands

The Centre’s proposed scrapping policy is set to be a mix of penalties and financial incentives.

Among the considerations include waiving off registration charge on a new vehicle to incentivize scrapping, the sources said.

“The Centre is likely to ask states to give a rebate on road tax; besides also asking original equipment manufacturers (OEMs) to give 1-2 percent discount for customers who have scrapped old vehicles,” the sources added.

For this, states will be allowed to use the green tax revenue to give a rebate on road tax.

Further, the government is likely to hike the cost of registration renewal for all vehicles.

Under the new scrappage policy, personal vehicles and commercial vehicles which fail fitness tests after 20 years and 15 years will not be allowed to ply. The government will also issue guidelines on setting up of scrapping centres and automated fitness centres for this purpose, it added.

Finance minister Nirmala Sitharaman announced in her Union Budget 2021 speech on February 1 that the government intended to go ahead with a “Vehicle Scrappage Policy”. The policy has been in discussion for some time now, and it’s been made clear that the government intends to test-drive the policy by making it a voluntary endeavour before making it mandatory.

Further, the government is likely to hike the cost of registration renewal for all vehicles.

Under the new scrappage policy, personal vehicles and commercial vehicles which fail fitness tests after 20 years and 15 years will not be allowed to ply. The government will also issue guidelines on setting up of scrapping centres and automated fitness centres for this purpose, it added.

Finance minister Nirmala Sitharaman announced in her Union Budget 2021 speech on February 1 that the government intended to go ahead with a “Vehicle Scrappage Policy”. The policy has been in discussion for some time now, and it’s been made clear that the government intends to test-drive the policy by making it a voluntary endeavour before making it mandatory.

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