Centre Announces Up To 25% Road Tax Exemption On Scrapping Old Cars

Under the new scrap policy, road tax exemption will be up to 25% for private vehicles and up to 15% for commercial vehicles. These rules will come into effect from April next year.

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The Union Ministry of Road Transport and Highways has made another announcement on the scrappage policy. In fact, under the new National Automobile Scrappage Policy, vehicles purchased after scraping old vehicles will be exempted by up to 25 per cent. The ministry said the vehicle scrapping policy is taking steps to get vehicle owners to scrap their old vehicles. 

Exemption to be available for up to 15 years
The Union minister said in a press release that the exemption will be given for transport vehicles for up to eight years and for non-transport vehicles for up to 15 years. Road tax exemption will be up to 25% for private vehicles and up to 15% for commercial vehicles. A notification issued by the Ministry said that these new rules can be termed as (24th Amendment) Rules and will come into force from April 1, 2022.

States to receive orders soon

The notification says that the rule will not exempt transport vehicles after eight years and non-transport vehicles after 15 years. The Ministry of Road Transport and Highways informed that the Centre will soon ask the state governments to give up to 25 per cent road tax exemption for vehicles purchased after scraping old vehicles under the new scrappage policy.