Giridhar Aramane, Secretary to the Government of India, Ministry of Road and Transport told the media that the Government will be declaring some incentives as part of the currently-under-work vehicle scrapping policy, within two or three weeks.
Speaking on the behalf of the Road and Transport Ministry, he said that ministry is working on the details of the vehicle scrapping policy which was recently announced in the Union Budget for the financial year 2021-22.
A ‘green tax’ has already been announced as disincentive complementing the new policy. This green tax will be levied on vehicles which are older than 15 years.
It is also expected that the government will increase the cost of renewal of registration of personal vehicles, and also the fitness certification fee for commercial vehicles, which is aimed at discouraging people from using the same vehicle for a longer duration.
Talking about the same, Aramane said, “The incentive structure of the scrapping policy is under works. We are in discussion with stakeholders. Minister will announce the result of discussion in few weeks. However, disincentives have been recently notified by the state governments, which is the green tax. Many states are already imposing it, but in a very ineffective way.”
