BENGALURU: As the scrapping of old unfit vehicles has commenced at the state’s first Registered Vehicle Scrapping Facility (RVSF) in Devanahalli, a top official of the state transport department said they are unable to extend concession benefits to vehicle owners and they are resolving it.
According to Karnataka’s Registered Vehicle Scrapping Policy, 2022, after a vehicle is scrapped at the RVSF, its owner will be handed over a ‘Certificate of Deposit’ (COD), which can be used to get tax concessions while purchasing a new vehicle and other benefits that may be declared from time-to-time. The official said that work is on to resolve the issues related to offering concessions and an ‘easy way of implementation’ of the tax concession is put in place so that there is no confusion.
Speaking to TNIE, the official said, “Vehicle scrapping at the first RVSF in Devanahalli has commenced operations and old unfit vehicles are being scrapped in a scientific manner. However, there is confusion related to extending concessions by the state government to owners of the scrapped vehicles.”
As per the existing Registered Vehicle Scrapping Policy in Karnataka, for example, if a vehicle owner has paid Rs 1 lakh as tax, he is eligible to get 25 per cent of it in the form of concession while buying a new vehicle, he said.
For two-wheelers that were registered before 1986, the concession in Motor Vehicle Tax is Rs 500 and for Light Motor Vehicle registered before 1995, it is Rs 3,000. These are expected to be altered a little and a uniform system will be introduced. Also, the rule that the old scrapped vehicles’ owners should get approval from their RTO will be removed to make the process more streamlined, the official said.
To maintain a uniform system in extending concessions, the Ministry of Road Transport and Highways (MoRTH) through the National Informatics Centre (NIC) is developing software, but it is taking time. Once it is ready, there will be no confusion. An owner of an old vehicle can scrap his vehicle, get the COD and submit/trade it for the purchase of a new vehicle, the official said.