All you need to know about: Scrappage policy & Green Tax

👉Ministry of road transport and highways, Nitin gadkari, has approved a new "Vehicle Scrappage policy" to incentivize user to scrap old vehicles and buy new ones.

👉Statement from ministry, "The minister approved the policy of deregistration and scrapping of vehicles owned by Government department and PSU, which are above 15 years in age. It is to be notified and will come into effect from April 1 2022"

👉The policy is to scrap vehicle which are over 15 years on the road. They are not include private vehicles but also vehicles owned by government departments and PSU. The policy notification is expected to be announced soon before being implemented from April 1, 2022.

👉The policy is expected to offer incentive to motorists who decided to scrap their old vehicles. The incentives were expected to be a waiver of the registration fee and a discount on the road tax. 

👉The old vehicles would be used in recycling clusters,thereby cutting the cost of raw materials.

Green Tax :

👉Transport vehicles older than 8 years could be charged Green tax at the time of renewal of fitness certificate, at the rate of 10 to 25 % of road tax.

👉Personal vehicles to be charged green tax at the time of renewal of registration certification after 15 years.

👉Public transport vehicles, such as city buses, to be charged lower green tax.

👉Higher green tax (50 % of Road TAX) FOR VEHICLES BEING REGISTERED IN HIGHLY POLLUTED CITIES.

👉Differential tax, depending on fuel (petrol/diseal) and type of vehicle.

👉Vehicles like strong hybrids, electric vehicles and alternate fuels like CNG, etahnol,LPG etc to be exempted.

👉Vehicles used in farming such as tractor, harvestor, tiller etc to be exempted.

👉Revenue collected from the Green tax to be kept in a separate account and used for tackling pollution and for states to set up state of art facilities for emission monitoring. 

This policy would not only curb air pollution levels in india but will in turn help in posting demand for new vehicles thus helping the ailing automotive industry in india. Older vehicles outdated safety features would be phased out allowing for more people to be travelling is safer modern vehicles.