Aiming to reduce pollution, UP govt offers tax exemption on scrapping of end-of-life vehicles

The tax rebates are available for six months from September 11, 2024, to March 10, 2025, subject to certain conditions

With an aim to reduce air pollution in the city, ahead of the winter season, the Uttar Pradesh government is offering tax exemptions on scrapping of end-of-life vehicles (ELVs), said an order issued by principal secretary (transport), Uttar Pradesh.

The decision is significant as the Commission for Air Quality Management’s graded response action plan (Grap) is expected to come into effect soon, once the air quality deteriorates. (Sunil Ghosh/HT Photo)

The tax rebates are available for six months from September 11, 2024, to March 10, 2025, subject to certain conditions.

“The government is pleased to provide exemption from the payment of taxes on the condition of getting the said vehicle scrapped. The penalty for non-payment of dues will also be waived. The above exemption shall be effective for a period of six months from September 11, 2024, till March 10, 2025,” the order stated.

According to the transport department data, there are around 150,000 ELVs, including 25,000 commercial vehicles, that have not cleared tax dues.

“Taxes for private vehicles are paid as lump sum, while commercial vehicles are taxed quarterly, biannually, or annually,” said an official, adding that the new initiative not only offers tax exemptions but also penalty waivers for non-payment of tax dues. The ELVs need to be scrapped at the registered vehicle scrapping facility.

“The vehicles of all categories registered in the state before 2003 will receive a 75% tax exemption; vehicles registered between 2003 and 2008 will get a 50% tax exemption. Additionally, diesel vehicles registered in National Capital Region (NCR) districts between 2008 and 2013 are also eligible for a 50% tax exemption,” said the order issued on September 27 by principal secretary L Venkateshwarlu.

In 2015, the National Green Tribunal (NGT) banned ELVs—diesel vehicles older than 10 years and petrol vehicles older than 15 years—in the NCR to reduce air pollution.

“The department will start a drive to ensure compliance with the NGT orders and encourage vehicle owners to scrap old vehicles,” said Siyaram Verma, assistant regional transport officer (ARTO) administration.

The decision is significant as the Commission for Air Quality Management’s graded response action plan (Grap) is expected to come into effect soon, once the air quality deteriorates. On Monday, Noida recorded an air quality index (AQI) 120 and Greater Noida 114— both in the ”moderate” category of the AQI scale.