States can extend concession against a certificate of scrapping up to eight years for commercial vehicles and 15 years for personal vehicles, as per a draft notification of the Road Ministry on which it has invited comments. The final decision on the extent of concession rests with the States.

This is a part of a series of steps taken by the Ministry to bring in an organised vehicle scrapping ecosystem. It proposes to have the rules for testing and scrapping ready by October this year.

The Road Ministry has issued a draft-rule regarding scrapping policy to States, where it has advised that in case a new commercial vehicle is registered against “certificate of vehicle scrapping”, then the commercial vehicle may be given a 15 per cent waiver of road tax for up to eight years.

The fitness test and tax collections for commercial vehicles are done more frequently than for personal vehicles, ,for which tax is collected upfront for 15 years.

Similarly, in case a new personal vehicle is registered against the user submitting a certificate of scrapping, concession of up to 25 per cent for up to 15 years may be given, it proposed.