News

20 year old CVs to be deregistered from April 1, 2020

The government has decided to deregister commercial vehicles (CVs) that are more than 20 years old from April 1, 2020. As part of the new vehicle scrapping policy, CVs will have a 20-year age limit. 

Vehicles like taxis, rickshaws, buses and trucks registered before the 2000 will soon be phased out. The rule does not apply to private vehicles including cars and 2-wheelers as long as they comply with the latest emissions norms. It has been reported that the government decided to raise the cap from 15 years to 20 years since most CVs change hands multiple times during their lifecycle. 

The government is expected to give some tax incentives to the owners who’s CVs will be scrapped under this scheme. Additionally, vehicle manufacturers will reportedly offer special discounts to buyers who scrap their old vehicles. Buyers can also expect to get incentives on the purchase of EVs under the FAME scheme. 

Besides this, a proposal to keep the sale of scrap CVs outside the ambit of GST is likely be placed before the GST council. According to a media report, the government has also proposed to reduce the GST rate from 28% to 18% on new CVs purchased to replace the scrapped ones.

Source: Times of India

 
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