Vehicle Scrappage Policy: In the budget, Finance Minister Nirmala Sitharaman announced a new scrap policy. As a result, 20 year old and unfit vehicles will be scrapped. The government is going to increase the fitness certificate fee for renovation of private vehicles and commercial vehicles. The fee increase is part of a scrap policy announced in the 2020 budget this year. On Monday, the finance minister announced a voluntary vehicle junk policy to remove old vehicles from the roads. Which will reduce vehicle pollution and oil import bill.
According to the finance minister, the Ministry of Road Transport and Highways will soon issue a guideline on the new policy. Under the Vehicle Scrappage Policy, a 20 year old private and a 15 year old commercial vehicle will have to pass through automated centers for fitness. Sources said the increase in re-registration and fitness certification would apply to both private and commercial. Medium to heavy commercial vehicles will have to pay higher fees. At present, the government is thinking of making different slabs.
The government can impose fines on vehicles older than 20 years. So customers will have to pay fitness fees and green tax. States will be responsible for enforcing this rule.
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