The ministry had issued a notification in October last year under the Central Motor Vehicles Rules, regarding provision of concession in tax. (File) The Chandigarh Administration will be giving concession on road tax on purchase of new vehicle to all those who deposit their old vehicles (that are used upto certain years) for scrapping from April 1, 2022.
The concession on road tax will be given on the purchase of a new vehicle only after the owner deposits the old one. The decision is being implemented after directions from the Ministry of Road Transport and Highways.
According to the Chandigarh Administration, as per the ministry’s guidelines, there would be a concession upto 25 per cent for non-transport vehicles (personal) used upto 15 years. There will be a concession upto 15 per cent for transport vehicles used upto 8 years. It was stated that the concession in the motor vehicle tax shall be provided by the respective authority, in case the vehicle is registered against the submission of Certificate of Deposit.
The ministry had issued a notification in October last year under the Central Motor Vehicles Rules, regarding provision of concession in tax.
Certificate of Deposit
The CD is issued by a Registered Vehicle Scrapping Facility (RVSF) to the owner of a vehicle when they deposit the vehicle with the RVSF for scrapping. People usually keep using old vehicles that cause pollution.
This notification was issued by the government to incentivise people so that they scrap their old vehicles that keep polluting the air.
Chandigarh already sees high density of personal vehicles within the country. The city has over two vehicles per household, making it the city with highest density of vehicles. The percentage increase in total number of vehicles in Chandigarh for over a decade (2007-2018) has been over 24.5 per cent. In August 2018, a report by the Centre for Science and Research had concluded that Chandigarh was the second worst among 14 cities in per travel trip emissions due to high usage of personal vehicles.
The share of car usage was close to 80 per cent in the city as compared to Lucknow (70 per cent), Ahmedabad (65 per cent) and Jaipur (60 per cent). As per a study of the daily traffic (24 hour) at the outer cordon points, about 1,52,650 vehicles enter or leave Chandigarh in a day.
The report also found that there was a high volume of passenger and freight traffic.
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