The Ministry of Road Transport and Highways has recently announced the scrappage policy for vehicles that are not fit for use anymore. In a new development, the ministry is figuring out to replace state-wise registration codes with an IN code, which can be used PAN India. It is being done to keep the owners away from the re-registering process, which they go through while when shifting residence from one state to another.
Initially, the scheme will be rolled out for government employees, defence personnel, and private sector organizations that operate from 5 or more state or union territories. While the new IN registration code will come into place, the old state-wise codes will remain the same. However, with this amendment, vehicle owners will get away from re-registering their cars, when they move to a different state.
As of now, the Ministry of Road Transport and Highways has sent a proposal to state governments for review, and a final resolution over the same is yet to come. Once approved, vehicle owners will be able to move from one state to another without changing the registration of their cars even if they plan to stay in a different state for more than 12 months.
Currently, owners have to re-register their vehicle in the new state/UT they move in. And the process of re-registration isn’t any less of a hassle. It includes obtaining NOC from the regional transport department where the vehicle is registered. Moreover, vehicle owners need to pay the road tax again while re-registering their possessions.
In this scheme, the government plans to have fixed tax slabs across the nation. However, the tax will be charged for a duration of two years or in multiples of 2 years. For vehicles that cost less than INR 10 lakh, 8 per cent tax will be levied, while for those valued in between INR 10-20 lakh, a 10 per cent tax value will be charged. And for vehicles costing northwards of INR 20 lakh mark, the tax will come up to 12 per cent. Owners of diesel-powered vehicles will have to pay an extra 2 per cent, while the EVs will invite a 2 per cent rebate.