Discounts, tax reliefs await buyers who send their old vehicles to the scrapyard

New Delhi: Timely fitness tests would be a crucial factor in deciding the future of your old vehicles as per the new scrappage policy announced by the central government. Even if your vehicle, which is in use after the registration period, clears the fitness test, it has to be tested again every five years.

The central government's plan is to open 50 vehicle scrapping centres in the country by March 2023. The deadline set for opening 75 fitness testing centres is December, 2023. The cost for erecting an automated fitness testing centre ranges from Rs 17 to 33 crore.

As per the new policy, a vehicle owner will be given four to six per cent of the ex-showroom price of the new model of the vehicle to be scrapped.

Another highlight is that the vehicle owner is entitled to get a five per cent discount for his new vehicle if the former gives the scrappage certificate to the company or showroom.

The central government will also advise the state governments to give a tax reduction of 25 per for private vehicles and 15 per cent for commercial vehicles. It is also mooted that registration for new vehicles be made free of cost.

Scrappage centres
The new scrappage centres should be allowed to open only after ensuring proper labour standards and safety and pollution control mechanisms. Such centres must have proper parking facilities apart from having sound, water, and air pollution control systems and specialised vehicles equipped for removing hazardous waste from the site.

Fitness testing centres, planned in every district, can be opened as a private-public joint venture or as a purely private enterprise or by automobile companies. Model fitness certification centres will also be opened in every district. Those who run such centres should not own automobile spare part shops.

Hike in registration fees
With the implementation of the new scrappage policy for vehicles, the fee for registration of vehicles and fitness certificates will go up. The hike in rates has already been notified.

The registration fee for a bike, which is in use after 15 years, will go up from Rs 300 to Rs 1,000. For a car, the hike will be from Rs 600 to Rs 5,000. For three-wheelers, it will be Rs 600 to Rs 2,500. The registration fee for imported cars will go up from Rs 5,000 to Rs 40,000.

Among transport vehicles, the new registration fee for three-wheelers will be Rs 3,500 from Rs 1,000. For bike taxis, it will be from Rs 500 to Rs 1,000 and for taxis, from Rs 1,000 to Rs 7,000. For medium goods, and passenger vehicles, the new registration fee will be Rs 100,00 from the existing Rs 3,000 and for heavy goods, and passenger vehicles, it will be Rs 12,500 from Rs 1,500.

The fee for fitness certificate for two wheelers will be Rs 400. For a car, it will be Rs 800.

The penalty for delay in taking a fitness certificate for your bike will cost you Rs 300. For a car, the penalty will be Rs. 500 per month. For commercial vehicles, the fine for the same offence is Rs 50 daily.

635 KSRTC buses to be dismantled
The Kerala State Road Transport Corporation (KSRTC) has already kept apart 635 buses, which have been in service for more than 13 years, for scrapping.

Buses procured as part of the Jawaharlal Nehru National Urban Renewal Mission do not come under the list of vehicles meant for scrapping, will be deployed for profitable services. For instance they could be hired by groups or individuals for a specific purpose.

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