Vehicle Tax And Challan Waiver: Tax exemption will be given on vehicle scrapping, traffic challan will also be waived..
Shikha Saxena March 29, 2025 04:15 PM
The Gujarat government has taken a new initiative to remove polluting vehicles from the roads. Now the vehicle owners who get their vehicles scrapped will not only get an exemption in vehicle tax, but the amount of challan for violating traffic rules by the vehicle to be scrapped will also be waived, and if there is any other penalty imposed, that will also be waived.

These incentives have been given for scrapping transport vehicles older than eight years. Under this, pending tax, penalty, interest, and challan will be waived through the 'Registration and Functions of Vehicle Scrapping Facility' (RVSF). The purpose of giving these incentives is to encourage vehicle owners to scrap polluting vehicles.

Circular issued
According to a Times of India report, the Transport Department has issued four circulars related to this scheme. According to one of these, if a vehicle older than eight years is scrapped in RVSF, any offense committed under the Motor Vehicles Act, 1988 will be adjusted. Apart from this, challans related to traffic violations like overspeeding, red light jumping will be waived on submission of deposit certificate.

Tax exemption will be applicable for one year.

Other circulars have explained in detail about penalty, interest and tax exemptions. This tax exemption will be applicable for one year from May 1, 2025. The age of the vehicle will be determined from its first registration date and it will apply to all vehicles.

Who will get the benefit?

A senior official said that this scheme will mainly benefit transport vehicles. There is a lump sum tax for 15 years for private vehicles, while transport vehicles have to pay tax every year. If the vehicles whose tax is due are scrapped, then the motor vehicle tax and interest on it will also be waived.

Discount up to 15% and 25%
On giving the 'Certificate of Deposit' of the scrap vehicle, one also gets a discount in the registration fee while buying a new vehicle. This discount is up to 25% for private vehicles and 15% for commercial vehicles.
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