All Govt Vehicles Older Than 15 Years Will Be Scrapped; Heavy Green Tax For Old Vehicles Imposed

The Government vehicles that are older than 15 years will also be included in the vehicle scrappage policy.

The policy was approved on January 25, which stated that vehicles that are older than 15 years will be scrapped, and will be effective from April 1, 2022.

A Green Tax will also be levied now, and the proposal for the policy has been approved by the Minister as well.

Government Vehicles Older Than 15 Years To Be Scrapped 

The Ministry of Road Transport and Highways (MoRTH) has also confirmed the news that the Government vehicles that are older than 15 years will be scrapped; the policy will be effective from April 1, 2022.

This move is expected to reduce air pollution and will also increase the demand for automobiles. On July 26, 2019, the government had proposed modifications to the motor vehicle rules. However, this was for pushing the usage of electric vehicles. 

In August 2019, Finance Minister Nirmala Sitharaman had stated that a scrappage policy is in the works in light of the slowdown of the automobile market.

The scrappage policy is expected to offer incentives to motorists who would scrap their old vehicles. These incentives would be in the form of a registration fee waiver and a discount on the road tax as well. 

As per reports, the government is also discussing disincentives for people who are not scrapping their old vehicles. This includes an increased fee for the fitness certificate of 15-year-old personal vehicles.

Green Tax To Be Levied; Proposal Approved By Minister

The Green Tax states that any transport vehicles that are older than eight years will be charged a Green Tax at the time of the renewal of fitness certificate. This tax will be at the rate of10 to 25 % of road tax. 

Additionally, transport vehicles such as city buses will be charged a lower Green Tax. Hire a Green Tax as much as 50% of the road tax will be charged for vehicles that are registered in highly polluted cities.

Some vehicles will reportedly be exempted from the tax such as strong hybrids, electric vehicles, and alternate fuels like CNG, ethanol, LPG, etc. Will be exempted from the tax This also includes vehicles used in farming, such as tractors, harvestors, tillers, etc.

The revenue that will be collected from the green tax will be kept in a separate account and be used for dealing with pollution. It can also be used by states to implement advanced facilities to monitor emission.