The Indian cabinet has approved a proposal for a 75 per cent tax exemption and a 100 per cent penalty on scrapping personal and commercial vehicles. Ten to twenty years old vehicles will be used for this purpose. It is a great initiative taken by the Uttar Pradesh government to get rid of old vehicles with scrap. This decision has been taken by the government due to the rising pollution levels in the country, with old vehicles being considered a major contributor. Hence, it will reduce pollution and positively impact the environment. The discount can be availed by depositing the remaining due amount in a lump sum.Government preparing a list of old vehicles The state government is also preparing a list of government vehicles that will be scrapped by the end of March. Meanwhile, the Transport Department has proposed a scrapping policy to encourage private and commercial vehicle owners to opt for scrapping their old vehicles. The cabinet has also approved this proposal.75 per cent tax will be levied According to the policy, a 75 per cent tax will be levied on all categories of vehicles registered in the state before 2003, while a 50 per cent tax will be applicable on vehicles registered between 2003 and 2008. For diesel vehicles registered between 2008 and 2013 in the NCR states, a 50 per cent discount will be provided on the tax. Additionally, all classes will have a 100 per cent exemption on fines and penalties, and this exemption will be effective for one year from the date of notification.Government planning to make scrapping centres The government is setting up scrap centres to facilitate the scrapping of old vehicles. The central government will introduce citizens to these centres in some years. These centres will provide certificates to owners of scrapped vehicles, and it will be useful for availing of exemptions while buying and registering a new vehicle.The UP government hopes this new policy will encourage people to dispose of their old vehicles. They can easily switch to newer and less polluting vehicles because of this initiative. It is also expected to impact the environment and public health positively.
