Telangana Government Proposes a 15% Tax Rebate for Vehicle Scrapping

The Government of Telangana seems to be aggressively pushing the vehicle scrapping policy as the state government has proposed a 15% tax rebate for vehicle scrapping. This tax concession will boost the implementation of this policy, and this rebate will range between 10-15% on motor vehicle tax applied to the purchase of new vehicles. 

As per one of the statements of the Joint Transport Commissioner, C Ramesh, the draft policy of the vehicle scrapping initiative has already been submitted. The implementation of this initiative will come into effect once the state government gives official approval, thereby allowing the vehicle scrapping facilities to begin their operations. 

In addition to that, the Telangana government has already listed at least 1,000 RTC buses under the ‘to-be-condemned’ category. Following that, the vehicles belonging to the educational institutions will also be part of this ageing fleet, and there are approximately 2000 buses touching the 15-year mark. 

But as indicated above, the Telangana government will give a tax rebate ranging between 10% and 15% on motor vehicle tax on a new vehicle after scrapping the ageing vehicle(s). 

Giving his remarks on the vehicle scrapping policy, Joint Transport Commissioner, C Ramesh, stated “We have already submitted the draft policy and the state government is expected to approve it soon. Once the state government gives its approval, the policy will be implemented, and the vehicle scrapping facilities will begin their operations. As part of this initiative, three companies have already committed to establishing vehicle scrapping facilities. Our objective is to remove vehicles that contribute to pollution and those that are deemed unfit for road use.”

Closing Words

In our opinion, this beneficial vehicle scrapping policy of aged/ageing vehicles is a must-have in a country as it will promote less pollution, plus it will reduce road fatalities. According to some credible reports, in the year 2022, 15-year old vehicles led to 1306 reported accidents in Telangana, that resulted to 418 casualities and left more than 1100 citizens injured. 

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