The Gujarat government has taken a new initiative to remove polluting vehicles from the roads. Now vehicle owners who get their vehicles scrapped will not only get a discount in vehicle tax, but the amount of the challan issued for violating traffic rules by the scrapped vehicle will also be waived off and any other fines imposed will also be waived off.
These concessions have been given for scrapping transport vehicles that are more than eight years old. Under this, the pending tax, penalty, interest and challan will be waived through the ‘Registration and Works of Vehicle Scrapping Facility’ (RVSF). The purpose of giving these concessions is to encourage vehicle owners to scrap polluting vehicles.
Circular issued
According to a report in Times of India, the Transport Department has issued four circulars related to this scheme. According to one of them, if a vehicle older than eight years is scrapped in RVSF, then any offence committed under the Motor Vehicles Act, 1988 will be adjusted. Apart from this, challans related to traffic rule violations like over speeding, red light jumping will be waived on submission of challan deposit certificate.
The tax exemption will be valid for one year.
The penalty, interest and tax exemption have been explained in detail in another circular. This tax exemption will be applicable for one year from May 1, 2025. The age of the vehicle will be determined from its first registration date and it will be applicable to all vehicles.
Who will benefit?
A senior official said that this scheme will mainly benefit transport vehicles. There is a lump sum tax for 15 years for private vehicles, while transport vehicles have to pay tax every year. If the vehicles on which this tax is due are scrapped, then the motor vehicle tax and the interest on it will also be waived.
Up to 15% and up to 25% discount
On providing ‘Certificate of Deposit’ of scrap vehicle, the person gets discount in registration fee while purchasing a new vehicle. This discount is up to 25% for private vehicles and 15% for commercial vehicles.
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