Gandhinagar (Gujarat) [India], October 1 (ANI): The Gujarat Government has taken an important decision to encourage the scrapping of old vehicles and motivate vehicle owners to purchase new vehicles.
As per this decision, up to 50% concession in Motor Vehicle Tax will be provided at the time of registration of a new vehicle, based on the Certificate of Deposit (COD) issued after authorised scrapping of eligible old vehicles. This decision directly links the scrapping of old vehicles with a financial benefit.
According to a press release, under the guidance of Chief Minister Bhupendra Patel and the leadership of Deputy Chief Minister Harsh Sanghavi and Minister of State for Transport Pravin Mali, the direct implication of this decision is that the COD obtained after scrapping an eligible old vehicle can be utilised at the time of registration of a new vehicle, and a concession will be available in the Motor Vehicle Tax payable on the new vehicle as per the applicable provisions.
This will make the financial transition from scrapping to purchasing a new vehicle easier for owners of years-old vehicles.
As per the notification recently issued by the Ports and Transport Department regarding this decision, transport and non-transport vehicles manufactured as per Mass Emission Standards Bharat Stage-I (BS-I) and earlier standards have been covered under this provision. In addition, a concession has also been provided for all medium and heavy goods motor vehicles as well as all medium and heavy passenger motor vehicles manufactured as per BS-II standards.
Thus, owners who scrap eligible vehicles with old emission standards will now not only be able to get rid of their old vehicles, but will also have an opportunity to avail significant tax relief at the time of registration of a new vehicle.
As per the release, the most important aspect of this decision is linked to the COD. The Certificate of Deposit received after authorised scrapping of an eligible old vehicle will be presented at the time of registration of the new vehicle. Based on this, the benefit of concession in Motor Vehicle Tax will be provided as per the rules.
This government initiative is expected to encourage the process of scrapping old vehicles and moving towards new vehicles instead of continuing to operate old vehicles on the roads for a long period. Particularly for owners of old commercial vehicles, the tax relief available at the time of purchasing a new vehicle could provide a significant financial benefit.
For this tax concession, the relevant CODs issued up to March 31, 2027, will be considered. This means that owners of eligible vehicles will have to complete the process of scrapping and obtaining the COD within the stipulated time limit, said the release.
The method of calculating the tax concession will remain as per the previously prescribed method. Thus, while the benefit of the concession has been enhanced through the new decision, the existing method of tax calculation will remain unchanged.
As per the release, the State Government has also clarified that if tax concession has already been availed based on the COD against the concerned scrapped vehicle, concession cannot be availed again under this provision against the same vehicle.
Thus, the Gujarat Government’s decision links the entire process, from scrapping an old vehicle to purchasing a new vehicle, with a financial incentive. For eligible vehicle owners, the path is now clear - scrap the old vehicle, obtain the COD, purchase a new vehicle and avail up to 50% concession in Motor Vehicle Tax as per the rules. (ANI)
Gujarat govt announces up to 50% motor vehicle tax concession for scrapping old vehicles, purchasing new ones
