The Government of Telangana has embraced the Vehicle Fleet Modernization Policy, aligning with amendments to the Motor Vehicle Act. This policy encourages the voluntary scrapping of old vehicles, promoting road safety and a cleaner environment. By phasing out outdated vehicles, Telangana aims to reduce pollution and ensure a safer driving ecosystem, following the footsteps of other states with similar initiatives.
The amendments to the Motor Vehicle Act, 1988, including GSR No. 652 (E), 653 (E) from September 2021, GSR No. 720 (E) from October 2021, and more recent updates such as GSR No. 29 (E) from January 2023, and GSR No. 663 (E) from September 2023, provide the legal framework for establishing Registered Vehicle Scrapping Facilities (RVSF) and Automated Testing Stations. These changes enable the creation of an efficient scrapping infrastructure across Telangana, benefiting both the environment and the economy.
Key Incentives for Voluntary Vehicle Scrapping
To promote this initiative, the Telangana government offers several incentives aimed at vehicle owners. These include tax benefits, penalty waivers, and new vehicle purchase concessions, designed to make scrapping old vehicles more attractive.
1. Waiver of Outstanding Green Tax and Penalties
One of the major incentives under this policy is the waiver of the entire outstanding green tax and penalties. For transport vehicles registered more than eight years ago and non-transport vehicles older than 15 years, vehicle owners can benefit from the waiver of green tax under Section 3-B of the TGMVT Act, 1963. Similarly, penalties for unpaid quarterly taxes under Rule 13 of the TGMVT Rules, 1963, will also be waived.
To avail of this benefit, vehicle owners must apply to a Registered Vehicle Scrapping Facility (RVSF) within two years from the date the notification is issued. The scrapping facility must be registered under Rule 6 of the Motor Vehicles (Registration and Functions of Vehicle Scrapping Facility) Rules, 2021.
2. Tax Concessions for New Vehicles
The government also provides substantial tax concessions for vehicle owners purchasing new vehicles upon scrapping their old ones. Under Rule 51A of the Central Motor Vehicle Rules, 1989, these tax concessions apply to both non-transport and transport vehicles, provided the owner submits a Certificate of Deposit issued by the Registered Vehicle Scrapping Facility.
The tax concession applies only to the same category of vehicles as the one being scrapped. For example, if a non-transport vehicle is scrapped, the concession will only apply to the purchase of another non-transport vehicle.
Incentives for Scrapping Government Vehicles
In line with Rule 52A of the Central Motor Vehicle Rules, 1989, the Government of Telangana has also mandated the scrapping of outdated government vehicles. This applies to vehicles owned by state government departments, municipal corporations, and state transport authorities. By scrapping old government vehicles, the state aims to set an example for private vehicle owners, encouraging the adoption of this eco-friendly initiative.
Tax Concessions for Motor Vehicles
In addition to the scrapping incentives, the government offers specific tax benefits for new vehicle purchases. These concessions are based on the ex-showroom price of the new vehicle and are categorized as follows:
Non-Transport Vehicles (2-Wheelers and 4-Wheelers):
- 2-Wheeler Vehicles:
- Up to ₹1 Lakh: ₹1,000 concession
- ₹1 to ₹2 Lakh: ₹2,000 concession
- ₹2 to ₹3 Lakh: ₹3,000 concession
- ₹3 to ₹4 Lakh: ₹4,000 concession
- ₹4 to ₹5 Lakh: ₹5,000 concession
- 4-Wheeler Vehicles:
- Up to ₹5 Lakhs: ₹10,000 concession
- ₹5 to ₹10 Lakhs: ₹20,000 concession
- ₹10 to ₹15 Lakhs: ₹30,000 concession
- ₹15 to ₹20 Lakhs: ₹40,000 concession
- Above ₹20 Lakhs: ₹50,000 concession
- Construction Equipment Vehicles:
- A 10% tax concession is applicable to all construction equipment vehicles.
Transport Vehicles:
- A 10% tax concession will be provided for newly registered transport vehicles and LMV tractors. This concession will apply to quarterly or yearly taxes for up to eight years from the date of registration.
Encouraging Eco-Friendly Transportation
The Telangana government’s incentives for vehicle scrapping are designed to foster an eco-friendly transport system, reduce pollution, and improve road safety. The benefits are aimed at making it more attractive for vehicle owners to dispose of their outdated vehicles in an environmentally responsible manner while enjoying financial incentives for purchasing new, more fuel-efficient models.
This initiative not only promotes cleaner air and safer roads but also contributes to the state’s vision of modernizing its vehicle fleet and reducing its carbon footprint. Vehicle owners stand to benefit significantly from the tax breaks and incentives, making it a win-win scenario for both the environment and personal finances.
Conclusion
The Vehicle Fleet Modernization Policy of Telangana is a crucial step toward a sustainable and safe transportation system. By providing incentives for voluntary scrapping of old vehicles, the government aims to modernize the vehicle fleet while ensuring road safety and reducing pollution. Whether it’s through waivers on taxes or significant concessions for new vehicles, the policy is a forward-thinking approach to a greener future. Vehicle owners in Telangana should take advantage of these benefits and contribute to creating a safer, cleaner environment for all.
