Revealed On Apr 01, 2021 11:05:00 AM
This MoRTH draft rule is about to come back into impact from October 1, 2021.
The Ministry of Highway Transport and Highways (MoRTH) has issued a draft rule proposing that the acquisition of any new motorized vehicle shall be eligible for a highway tax concession towards a Automobile Scrappage Certificates.
- Personal autos will rise up to 25 % concession on highway tax.
- Industrial autos will rise up to 15 % concession on highway tax.
- Concession solely supplied if Scrappage certificates is issued inside 15 12 months of registration.
In accordance with the MoRTH round, this draft rule is slated to come back into impact from October 1, 2021.
MoRTH highway tax concession proposal
As per the MoRTH proposal, highway tax concession of as much as 25 % will likely be accessible on the acquisition of a brand new automotive, if the customer has a Automobile Scrappage Certificates for a non-public car. If the customer has a certificates for a business car, solely a concession of as much as 15 % will likely be supplied.
Moreover, the inducement will solely be supplied if the Automobile Scrappage Certificates has been issued inside fifteen years of the unique registration date of the non-public car. For business autos, that window is even smaller at eight years from its first registration date.
Automobile Scrappage coverage: different incentives
The above-mentioned highway tax concession is simply one of many numerous incentives the federal government was to implement with the introduction of the car scrappage coverage. The coverage additionally consists of incentives like advising automakers to supply a reduction (roughly 5 %) to anybody who scrapping their outdated autos. You possibly can head right here to learn our story on Automobile scrappage coverage: Meant advantages vs potential actuality, for a extra detailed look on the topic.