In a bid to phase out high-polluting vehicles, the Ministry of Road Transport and Highways (MoRTH) has proposed doubling the rebate on Motor Vehicle tax to 50% for individuals purchasing new vehicles after scrapping BS-II or earlier emission standard vehicles. Currently, the rebate stands at 25% for personal vehicles and 15% for commercial vehicles. 

According to the draft notification issued on January 24, the enhanced 50% rebate will apply to all vehicles, both personal and commercial, that comply with BS-I standards or were manufactured before the introduction of Bharat Stage (BS) norms. It also extends to BS-II medium and heavy vehicles used for private or transport purposes. 

The BS-I emission norms were introduced in 2000, followed by BS-II in 2002. To address pollution concerns, the government launched the Voluntary Vehicle Modernisation Program (Vehicle Scrapping Policy), aiming to establish an ecosystem for retiring unfit vehicles through Registered Vehicle Scrapping Facilities (RVSFs) and Automated Testing Stations (ATSs). 

As of now, over 60 RVSFs are operational across 17 states and Union Territories, with more than 75 ATSs in 12 states. Additional facilities are under development to expand the program’s reach and efficiency in reducing vehicular emissions nationwide. 

(ET)