Scrap & save: 25% road tax rebate on new private vehicles in Chandigarh

Chandigarh, April 18

To phase out unfit and polluting vehicles, the UT Administration has announced a concession in road tax to owners on registration of a new vehicle after scrapping the old one once it has completed 15 years of life.

A notification issued by the UT Administration today says 25% concession on the motor vehicle tax will be given in case of registration of non-transport (private) vehicles and 15% rebate in case of transport (commercial) vehicles.

Issuing the notification, UT Home Secretary Nitin Kumar Yadav stated the concession would be admissible only in case the new vehicle registered was of the same category (two-wheeler/four-wheeler) and class (transport/non-transport) as had been scrapped by the owner.

This means, if the owner wants to scrap a 15-year-old non-transport four-wheeler and claim concession, the new registered vehicle has to be of the same category and class.

In pursuance of the notification issued by the Ministry of Road Transport and Highways, Government of India, on October 5, 2021, the UT Administrator had fixed the concession in the motor vehicle tax in Chandigarh in case the vehicle was registered against submission of a “certificate of deposit” (CoD) issued by the registered vehicle scrapping facility to the vehicle owner when it was deposited with the facility for scrapping.

Following the notification, all government vehicles, including buses of the Chandigarh Transport Undertaking and vehicles attached with the Municipal Corporation that had completed 15 years had to be scrapped from April 1.

After obtaining details of all such vehicles from various departments, the UT Transport Department has prepared a list of 98 vehicles, including eight buses of the CTU, for scrapping. Once the vehicles are scrapped, the certificate will be sent to the departments concerned. However, it is optional for the general public.

Under the National Vehicle Scrappage Policy, commercial vehicles aged over 15 years and passenger vehicles aged over 20 years will have to be mandatorily scrapped if these do not pass the fitness and emission tests.

The policy extends many benefits that can help reduce the price of new vehicles such as a manufacturer can give up to 5% discount on a new vehicle, zero registration fee (Rs 600 in UT) on the purchase of a new vehicle, owners can receive scrap value equivalent to 4% to 6% of the ex-showroom price of a new vehicle and states can give up to 25% and 15% rebate on the road tax for personal and commercial vehicles, respectively.

The UT Administration has given approval to a firm to set up a vehicle scrapping centre in the Industrial Area, Phase 1.

Both must be of same category

• Road tax concession is admissible only if new vehicle is of same category (two-wheeler/four-wheeler) and class (transport/non-transport) as the scrapped one, says a notification
• Concession can be claimed against submission of a ‘certificate of deposit’ issued by registered vehicle scrapping facility to vehicle owner when it is deposited for scrapping
• Under National Vehicle Scrappage Policy, commercial vehicles aged over 15 years and passenger vehicles over 20 years will have to be scrapped if these don’t pass fitness and emission tests

Other scrappage policy benefits

• Up to 5% discount by manufacturer on new vehicle
• Zero registration fee (Rs 600 in UT) on new vehicle
• 4% to 6% scrap value equivalent to price of new vehicle