Daily News Analysis

Motor vehicle tax rebate proposed for scrapping old vehicles  

31st March, 2021 Economy

Context: The Ministry of Road Transport and Highways has brought out a draft notification proposing concessions in motor vehicle tax for those who take their old vehicle for scrapping.



  • The draft proposes up to 25% concession in motor vehicle tax for non-transport vehicles and up to 15% in case of transport vehicles upon submitting a “Certificate of vehicle scrapping”.
  • The concession will be valid for a period of 15 years for non-transport vehicles and for 8 years for transport vehicles.
  • The concession is among the several incentives planned by the Centre, including waiver of registration fees on purchase of new vehicles, to encourage scrapping of old vehicles.