Lok Sabha Question No. 3052 (UNSTARRED), answered on 2023-12-21
Subject: Incentivising Scrapping of Vehicles
Ministry: ROAD TRANSPORT AND HIGHWAYS
Asked by: Magunta Sreenivasulu Reddy, Margani Bharat

be pleased to state:

- (a) whether the Government is aware of the demand of vehicle owners to have an increased tax deduction of ten per cent of the old vehicle's original  invoice  value  or  fifty  per  cent  of  road  tax  paid  for  any  new vehicle;
- (b) if so, whether the Government proposes to implement this to further incentivise  owners  to  scrap  their  old  vehicles  and  if  so,  the  details thereof;
- (c) whether the Government proposes to change the vehicle scrappage criteria to be based on kilometres driven rather than the vehicle's age and if so, the details thereof;
- (d) whether it is true that the mandated fitness test on old vehicles is estimated to cost an average Indian customer roughly Rs. 40,000 every five years, in addition to paying surcharges of around ten to twenty five per cent of green taxes; and

## GOVERNMENT OF INDIA

## MINISTRY OF ROAD TRANSPORT AND HIGHWAYS

LOK SABHA UNSTARRED QUESTION NO. 3052 ANSWERED ON 21 st  DECEMBER, 2023

## INCENTIVISING SCRAPPING OF VEHICLES

3052. SHRI MAGUNTA SREENIVASULU REDDY: SHRI MARGANI BHARAT:

Will the Minister of ROAD TRANSPORT AND HIGHWAYS

सड़क परिवहन औि िाजमार्ग मंत्री

- (e)  if  so,  whether  the  Government  has  any  plans  to  remove  these requirements and if so, the details thereof?

## ANSWER

## THE MINISTER OF ROAD TRANSPORT AND HIGHWAYS (SHRI NITIN JAIRAM GADKARI)

- (a) and (b) No such representation has been received. However, in order to incentivize the vehicle owners to scrap old, unfit and polluting (End of Life vehicles) vehicles, MoRTH has issued GSR 720 (E) dated 5th October 2021 to provide concession in the Motor Vehicle Tax of up to 25% in case of non-transport vehicles and up to 15% in case of transport vehicles which are purchased against the 'Certificate of Deposit'.
2.       So  far,  19  states/UTs  have  announced  concessions  in  the Motor vehicle Tax against the Certificate of Deposit. These States are Bihar,  Madhya  Pradesh,  Rajasthan,  Assam,  Jharkhand,  Chandigarh, Odisha,  Uttar  Pradesh,  Haryana,  Karnataka,  Maharashtra,  Punjab, Mizoram, Chhattisgarh, Kerala, Uttarakhand, Gujarat, Dadra and Nagar Haveli and Daman and Diu and Goa.
3.       Further,  MoRTH  has  also  issued  a  notification  vide  GSR 714(E) dated 4th October 2021, for waiving off the registration fee of new vehicles, which are purchased against the Certificate of Deposit.
- (c)     1.      The  Ministry  has  formulated  the  Voluntary  Vehicle-Fleet Modernization Program (V-VMP) or Vehicle Scrapping Policy for creation of an ecosystem to phase out older, unfit and polluting vehicles across the country. The policy envisages voluntary scrapping of unfit commercial  and  personal  vehicles  strictly  based  on  their  fitness, irrespective of age of the vehicle or kilometers driven by the vehicle.
2.       However, as per GSR 29(E) dated 16th January, 2023, the certificate  of  registration  for  vehicles  owned  by  Central,  State  and Union Territory governments and their Departments, Local government (Municipal Corporations or Municipalities or Panchayats), State Transport Undertakings, Public Sector Undertakings (PSUs) and other Autonomous bodies with the Central Government and State

Governments shall expire after the lapse of 15 years from the date of initial registration. (d) and (e)          The fees for conducting fitness test of Vehicles (both manual and automated) are administered as per Rule 81, revised vide GSR 714(E) dated 04.10.2021, of the Central Motor Vehicles Rules, 1989. Further,  MoRTH  has  not  issued  any  guidelines/instructions  to  States regarding imposition of Green Tax.

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