The Punjab Cabinet on Friday approved the decision to implement the vehicle scrapping policy under which 8-year-old transport and 15-year-old non-transport vehicles would be scrapped. The new policy will allow owners of such vehicles to take their vehicles to scrap dealers across the state, approved by an authority set up by the state to oversee scrapping in the districts.
If you’re a owner of one or more such vehicles planning to get your old car scrapped, you should know that you will be paid the scrap value of the vehicle. The cabinet has also announced that one will also be entitled to a motor vehicle tax rebate of up to 15% on transport vehicles and 25% for non-transport vehicles under the Section 13(3) of the Punjab Motor Vehicle Taxation Act, 1924.
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Once a vehicle is scrapped, it will be purchased by the scrapper who will issue a ‘Certificate of Deposit’ to the owner of the vehicle, which will then have to be deposited at the concerned licensing authority to get tax exemption on the purchase of a new vehicle. Do note that the vehicle scrapping policy is voluntary for now, meaning that old cars will not be forcefully taken off the roads in Punjab.
Harpal Singh Cheema, Minister of Finance of Punjab, said that 25-30 year old vehicles are plying on roads, causing accidents. “If owners scrap their old vehicles properly as directed by the state government, they will offered tax rebate on purchase of their new vehicles,” said Cheema while addressing the media after the Cabinet meeting.
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