The government has decided to cap the life of commercial vehicles to 20 years beginning 2020. The Vehicle Scrapping Policy was approved by a high-level meeting at prime minister’s office (PMO) on Friday.
About Vehicle Scrapping Policy :-
- Under this policy vehicles such as taxis, three-wheeler, trucks and buses that were registered before 2000 cannot ply on road from April 1, 2020 and subsequently any commercial vehicle reaching the 20 year age limit will be automatically de-registered.
- The policy won’t cover private vehicles, meaning there will be no mandatory phasing out of cars and two-wheeler irrespective of their age as long as they comply with emission norms.
How govt can fix the age limit of Motor Vehicle ?
Section-59 of central motor vehicles act empowers the transport ministry to fix the age limit of motor vehicle for each category of vehicle.
What other things will be done by Govt to help the owners of old vehicles ?
In its bid to help the owners of old vehicles :-
- The government will put the proposal for giving some tax relief to those who scrap their vehicle and buy a new one against it.
- A proposal to keep the sale of old vehicles as scrap out of the GST regime would be placed before the GST Council.
- There will also be a proposal to reduce the GST rate from the present 28% to 18% for buying a new vehicle in lieu of the scrapped one.
- Moreover, those who go for buying an electric vehicle against the scrapped one may also get some incentive under government’s FAME scheme.
Prelims Level :- Vehicle Scrapping Policy
Mains Level :- Important Steps to curb pollution by Govt