Himachal Pradesh has announced a 50% discount on motor vehicle tax for purchasing new vehicles after scrapping old ones at authorized centers. The transport department issued a gazette notification on Thursday implementing the vehicle scrappage incentive policy.
Additional Chief Secretary RD Nazeem issued the notification covering all private and commercial vehicles manufactured under Bharat Stage-I or earlier emission standards. The policy also includes medium and heavy goods motor vehicles and passenger vehicles built according to Bharat Stage-II standards.
The tax relief applies for commercial vehicles up to 8 years from registration date and private vehicles up to 15 years. Vehicle owners must scrap their old vehicles at registered vehicle scrapping facilities (RVSF) and present a Certificate of Deposit during new vehicle registration to avail the discount.
The benefit is available only when purchasing a new vehicle in the same category as the scrapped one. For private vehicles, the facility is limited to first-time registration only. The Certificate of Deposit and its validity will follow Motor Vehicles Registration and Function of Vehicle Scrapping Facility Rules 2021.
Current vehicle statistics in Himachal Pradesh
Total registered vehicles: 22,43,524
- Private vehicles: 19,25,593
- Commercial vehicles: 3,17,931
Electric vehicles: 2,811
- Private electric vehicles: 2,412
- Commercial electric vehicles: 399
The transport department stated this initiative aims to remove old polluting vehicles from the state and promote environmental conservation. Vehicle owners must scrap their old vehicles at authorized scrapping centers to receive a Certificate of Deposit, which must be presented during new vehicle registration to claim the tax benefit.
The policy represents the state government’s effort to modernize the vehicle fleet while reducing vehicular emissions and promoting cleaner transportation options.
