BHOPAL: In a bid to control air pollution, the Madhya Pradesh government has decided to promote the scrapping of vehicles under the Registered Vehicle Scrapping Facility (RVSF).
The state cabinet meeting, chaired by CM Mohan Yadav on Tuesday, approved a 50% rebate in motor vehicle tax on new non-transport and new transport vehicles registered against a Certificate of Deposit issued for scrapping BS-I and earlier emission standard vehicles.
It also includes medium/heavy goods and passenger vehicles manufactured under BS-II norms, subject to conditions.
Currently, there are around 99,000 BS-I and BS-II category vehicles on the roads in MP. Providing a 50 per cent rebate in motor vehicle tax will result in a financial impact of Rs 100 crore.
Importantly, during 2024–25, the state granted tax rebates of nearly Rs 17.05 crore on 1,563 new vehicle registrations.
It’s noteworthy that the Union Ministry of Road Transport and Highways will provide special assistance of Rs 200 crore to Madhya Pradesh to promote scrapping of vehicles through the Registered Vehicle Scrapping Facility (RVSF).
For controlling air pollution in India, the Bharat Stage (BS-I) emission norms were first introduced in April 2000.
As per Tuesday’s state cabinet decision, the motor vehicle tax rebate will be granted only when the new vehicle is purchased in the name of the same person, in whose name the Certificate of Deposit (issued for scrapping the BS-I and BS-II vehicles) is held at the time.
The Certificate of Deposit will serve as the essential and sufficient document to claim incentives and benefits on the purchase of a new vehicle. The validity of this certificate will be three years from the date of issue.
The Certificate of Deposit will be electronically tradable. Transfer of the certificate to each new owner will be done on the trading platform as per Form 2D.
Once the certificate is used, it will be marked as “cancelled” in the vehicle database by the respective Regional Transport Office or dealer that has granted the benefit to the certificate holder.
The rebate in motor vehicle tax will only be available if the new vehicle is registered in Madhya Pradesh against a Certificate of Deposit issued by an RVSF located within the state. If the certificate has been issued by an RVSF situated outside Madhya Pradesh, the tax rebate will not be applicable.
The rebate will be provided only when the new vehicle belongs to the same category as the scrapped vehicle.
For vehicles with lifetime tax already deposited, a one-time 50% rebate in motor vehicle tax will be granted for both transport and non-transport categories.
For vehicles on which tax is collected on a monthly/quarterly/annual basis, a 50% rebate will be given for up to eight years.
The concessions notified under the Transport Department’s notification dated September 8, 2022 will not apply to vehicles availing tax rebate under this notification.