KATHMANDU: The government of Maharashtra, India has proposed new incentives to encourage vehicle owners to scrap older vehicles and replace them with new models. The proposal was announced in the state’s latest budget, according to TOI.
Under the plan, owners scrapping vehicles that meet Bharat Stage 3 or older emission standards will receive up to a 30% concession on motor vehicle tax when purchasing a new vehicle.
Meanwhile, owners scrapping Bharat Stage 4 vehicles will receive a 16% tax rebate on the purchase of a new vehicle.
The policy aims to accelerate the removal of aging and more polluting vehicles from roads while promoting newer and cleaner vehicles.
The proposal also includes a significant increase in green tax for vehicles older than 15 years.
Authorities believe the higher tax will discourage the continued use of older vehicles and push owners towards scrappage and replacement.
In Nepal, vehicles older than 15 years are subject to an additional 5% “old age” tax surcharge on top of the regular annual road tax.
Public combustion-engine vehicles are generally restricted from operating after 20 years, while electric vehicles may operate up to 30 years under existing regulations.
