[TorqueSteer]

The Ministry of Road Transport and Highways (MoRTH), in its vehicle scrappage policy approved on January 25, confirmed the scrapping of government vehicles older than 15 years, reported CNBC TV18. The policy will come into effect from April 1, 2022.

From the aforementioned date, vehicles used by the government departments would be put off service if they are older than 15 years.





Union Road Transport and Highways Minister Nitin Gadkari had, in September last year, said the scrappage policy was one of the top priorities. The move is expected to reduce air pollution while simultaneously spurring demand in the automobile sector.

Finance Minister Nirmala Sitharaman had in August 2019 said a scrappage policy is in the works, when the slowdown began in the auto industry in the aftermath of the COVID-19 pandemic.

On July 26, 2019, the government had proposed amendments to motor vehicle rules to allow the scrapping of vehicles older than 15 years in a bid to spur the adoption of electrical vehicles.

In July last year, the National Green Tribunal rapped the MoRTH for the delay in issuing guidelines on the scrapping of vehicles.

A bench headed by NGT Chairperson Justice Adarsh Kumar Goel had said a proper mechanism to set up authorised recycling centres compliant with environmental norms was an urgent need in view of a large number of 'End of Life Vehicles' (ELV).

The draft scrappage policy, whose details were yet to be shared in public domain by MoRTH, was also expected to offer incentive to motorists who decide to scrap their old vehicles.

The incentives were expected to be a waiver of the registration fee and a discount on the road tax. The old vehicles would be used in recycling clusters - thereby, cutting the cost of raw materials.

The scrappage policy is expected to boost demand for new vehicles in a COVID-hit economy. It is considered as crucial for the revival of India's auto sector, which was struggling since a year before the onset of pandemic.

Apart from the above incentives, a number of disincentives for those retaining old vehicles were also reportedly discussed. The latter, which includes higher fee for fitness certificates of 15-year-old personal vehicles, was announced through the Green Tax policy.

[shortbread]

For the scrappage policy to be truly successful, it is imperative that a fool proof mechanism is in place for the vehicles to be 'scrapped', and not resold as a cheap banger to further choke the roads.

[TorqueSteer]

I'd really like to know what incentive does the consumer get from this scrappage policy. By the looks, it will profit the automobile industry heavily. But will the automobile industry pass those benefits to consumers ?! I don't think so.

[NaXal]

Clear cut indication of goverment & goverment officials, whom we loved to call babu, are running away from their duties.

Making rule after rules, law after another to avoid working as per their job description.

Fees (including tax, insurance, etc) are already taking up as much as 45-50% of a new car on road value. For every litre of fuel, citizens are paying over 60% tax.

Isn't this enough green tax to scare off new car buyers already?

We are driving backwards.

Sorry for the rant but what's the point of fitness certificate? Or all these PUC checking? Aren't these mechanisms designed & practiced to curb unsafe & polluting vehicles?

If government is doing its job properly with fitness checking & PUC checking, then why getting forceful towards scrapping?

Business decision?

Once again, tax on buying and using a vehicle has already passed 60% mark. How helpful is that towards boosting automotive sector?

Add insult to the injury, traffic is lawless around the country. Traffic police departments are meeting their fine issuing target by hunting individual motorists. Motor insurance premium is increasing every year. There is zero chance of getting a 3rd party claim.

Let's close our eyes on these root & basic issues and try to be like North America or Europe.

Can't we take one step at a time?

Can't we first introduce a proper incentive towards scrapping policy? For example, first owner gets huge tax benefits & upgrade bonus from manufacturer for scrapping their car & getting a new one?

Secondly, Rethink & impliment a proper fitness checking system.

Can't our government see how North America & Europe are managing so many fit cars with so little human resource?

Please no more tax. We are already paying astronomically high tax on new car plus fuel !!

Once Covid is over, apart from few of us, the hardcore auto enthusiasts, rest of the country will again move towards ride sharing service. Who would want this much expenses and continue to take headache of lawless traffic & target meeting extorting traffic police?

Thanks.

[anb]

Diesel price is already very high and charging green tax for 8 year old transport vehicles just make the matters worse. I own a few transport vehicles and looks like it's better to close down my business and escape to some other country.

[Dry Ice]

Originally Posted by NaXal

Fees (including tax, insurance, etc) are already taking up as much as 45-50% of a new car on road value. For every litre of fuel, citizens are paying over 60% tax.

Isn't this enough green tax to scare off new car buyers already?

It's not in the Govt's best interests to serve the common man who doesn't serve them via electoral bonds. Check who got the tax cut earlier this year?

Anyway, coming to the policy, I would love to see some "authorised" scrapping centres first. If there is a place I can legally scrap my 15 yo car, get the registration cancelled and move on - I would be happy to do so, with or without an incentive. In my books, that's a much better option than sell/exchange for a relatively higher payout. When everyone right from the police to judiciary is likely to hold the original owner accountable for the buyer's negligence, I would much rather scrap the old car and sleep in peace.

[MSAneesh]

But where is the policy? I don't see any policy in aforementioned than tax proposal.
Liked the term "strong hybrid" LoL

[Bibendum90949]

Originally Posted by anb

Diesel price is already very high and charging green tax for 8 year old transport vehicles just make the matters worse. I own a few transport vehicles and looks like it's better to close down my business and escape to some other country.

Since the policy is applicable to govt. vehicles too, many state road transport corporations like KSRTC would go into ventilator mode. Many of them are already not in the best of financial health.

[Anxiousblock]

Government is trying to collect as much tax as they can. At the expense of economic growth. If a vehicle is fit and have emission as per rules, why green tax is being collected? Don't reregister the vehicle if emission is above rules.

[AnishRanjan]

This is daylight robbery. Covid has devastated businesses and lakhs of people have lost their regular jobs and livelihood. They are struggling to meet their day to day ends. On top of it the rates for fuels today is mind boggling and taxed to the brim. The price of new vehicles are increasing by the day and is already out of reach of most Indians. The whole second hand market will be devastated if 50% green tax is made compulsory in the main cities. No point selling your car for peanuts after paying lakhs for it. We the middle class citizens are being taxed left right and centre. Our only existence according to this government is to pay tax, help the industry lobby and help the rich become richer. Please go through this article to see how the rich have become richer and poor have been left with nothing during the pandemic. The middle class people are the punching bags in all of this.

https://www.hindustantimes.com/india-news

I hope this government wakes up to the reality and comes up rules to help the citizens of this country. The time now is not right for this stupid rule and it's unbelievable that the government is doing something like this at a time when the entire world is struggling from the effects of the coronavirus. High time people should stand up and fight for our rights. Otherwise the corporate and industry lobby will make life harder for us in the coming years with obnoxious rules that only help them and leave us with nothing.

Lastly, I am for fitness of vehicles and vehicles not fit for the road must be removed. Let them make checking stricter and I'm up for it. But adding another tax on an already over burdened citizen is simply not acceptable to me.

[warrioraks]

Originally Posted by NaXal

Clear cut indication of goverment & goverment officials, whom we loved to call babu, are running away from their duties.

Making rule after rules, law after another to avoid working as per their job description.

Fees (including tax, insurance, etc) are already taking up as much as 45-50% of a new car on road value. For every litre of fuel, citizens are paying over 60% tax.

You have hammered the nail right on the head.

Why levy additional tax if the vehicle is road-worthy? We need better execution of the existing laws rather than new ones. Do all vehicles on the road have PUC? What about the impact of the smoke spreading vehicles that we see everyday plying on the roads with full impunity? Moreover the lockdown made it pretty evident that vehicles are not the major reason for environment pollution in NCR. It is stubble burning. Where is the policy and implementation to solve that problem?

I am also sure this is not the last announcement that will burden vehicle owners. Would be very happy if automobiles are placed in the sin tax category once and for all so that all of us can stop reacting everytime something like this comes up.

Quoting myself from another thread where I had posted something similar but is apt in this context as well:

We live in an ironic world. On one hand, the government is printing money like there is no tomorrow. On the other hand, cops are fining us left-right-centre and the government is levying more and more taxes to pull back this money as if all hell has broken loose Crazy times.

[GrammarNazi]

Wouldn't Road tax on commercial vehicles that (after 8 years) would have 80% written off as depreciation as per RTO be a paltry amount! Similarly depreciation would be counted for private vehicles.

How much money does govt plan to generate after 8/15 years and what's the point of creating a negative perception & taking brickbats for that future, at this present depressing post-pandemic time ?

Very poorly timed, unwise and short sighted policy. If nothing, some state govt/union territory that has a different political party than the central government would reduce road taxes just for spite (infact it'll incentivise employment for auto-spares/accessory businesses, mechanics, vehicle painters etc. for that state/UT).

Assume the establishment can afford to annoy middle class as we're effectively captive (dis-united & have no other real viable <liquid> options to leave the country with profits), but my worry is that those earning ₹2-3Cr per annum, i.e. the tens of 000s of HNIs who actually reinvest into the economy, would be discouraged as they panic thinking "value" has evaporated. If they're ruffled, they'll easily move away to other countries where the situation is really much better.

Yes, there's a fiscal deficit & serious financial impact to recover from, but Govt should stop all these stunts & since all Govts worldwide are definitely going to increase taxes, they must wait for other countries to implement policies to protect the environment & cover their fiscal deficits i.e. let them lead the way in tightening tax system, do it in India after them.

[aayusht]

I think its less to do with babus avoiding their work and more to do with lobbying by auto companies. With ride sharing and evolving sentiments of working from home, people realizing the cost benefit analysis of owning a car vs renting a car, auto companies have not been seeing the growth they had wished for. on top of that the year 2020 was not great for them either. Therefore I think all this points to the lobbying from auto makers.

But yes, as you mentioned, we are heavily taxed for new car purchase, extremely high taxes on fuel and on top of that the lawlessness. Instead of focusing energies towards regulating this lawlessness and imposing and implementing stricter fines, they choose to discourage the common man from driving.

I am guessing their thought process?:

Log gaadi nahi chalanye toh road accidents bhi nahi honge,
Log gaadi nahi chalanye toh kharab roads ki shikayat bhi kam karenge


Translated to:
If people dont drive, there will be fewer accidents
If people dont drive, they wont even complain about bad roads

so many benefits of people not buying cars

Originally Posted by NaXal

Clear cut indication of goverment & goverment officials, whom we loved to call babu, are running away from their duties.

Making rule after rules, law after another to avoid working as per their job description.

Fees (including tax, insurance, etc) are already taking up as much as 45-50% of a new car on road value. For every litre of fuel, citizens are paying over 60% tax.

Isn't this enough green tax to scare off new car buyers already?


Thanks.

[gopa99]

The news headline is so misleading when it appeared in the news yesterday; this policy is in effect only for govt. fleet for the time being which doesn't mean anything much; the real hurdles come when this move is extended to the commercial vehicles where such steps make a definite increment to the economy and to the environment. We never can predict given the political turmoil happening between the Govt. and the farmers, how the trading and transport community would react to this move.

[COMMUTER]

At the interest of better emission control, it is high time that the manufacturers be forced to sell the engines separately in a crate. This will enable the customers to buy newer engines for their car which will help reduce emissions.


I am happy to have been among the last of the privileged few who, in exception to the uber-rich, did buy cars in our nation.