Shimla – In a bid to promote eco-friendly transportation and reduce environmental impact, the Himachal Pradesh state government has unveiled a significant initiative during a recent cabinet meeting. Vehicle owners in the state can now benefit from a one-time waiver of Motor Vehicle Tax, including associated interest and penalties, by choosing to scrap their old vehicles at a Registered Vehicle Scrapping Facility (RVSF). This incentive, applicable for one year, aims to encourage responsible vehicle disposal in line with existing environmental norms.
Additionally, the state government has introduced a 25 percent concession on non-transport vehicles aged up to 15 years and a 15 percent concession for transport vehicles up to eight years. These concessions apply to the tax payable under Section 14 of the HP Motor Vehicles Taxation Act 1972 when registering a new vehicle, provided a valid ‘Certificate of Deposit’ is submitted.
Chief Minister Sukhvinder Singh Sukhu highlighted the initiative’s environmental and economic benefits, emphasizing its role as a catalyst for the automotive industry and related sectors. The primary objective of the scrapping policy is to systematically recycle unfit vehicles, addressing the environmental pollution caused by them.
“The scrapping policy is crucial in tackling pollution and promoting sustainable development,” stated Chief Minister Sukhu. The tax concessions are viewed as an investment in the state’s future, with positive impacts on economic growth and environmental sustainability.
Himachal Pradesh aims to transition into a green energy state by March 31, 2026, with various measures already implemented in the state budget to strengthen green initiatives. Scrapping old vehicles at Registered Vehicle Scrapping Facilities ensures proper disposal of hazardous materials, component recycling, and compliance with regulations, contributing to responsible and sustainable vehicle disposal practices.
“Incentivizing vehicle scrapping is essential to encourage owners to choose environmentally friendly Registered Vehicle Scrapping Facilities. This ensures a scientific and eco-friendly process for vehicle disposal,” emphasized the Chief Minister. He added, “Without such incentives, there’s a risk that vehicle owners may resort to the unorganized scrap market, undermining the state government’s efforts to establish Himachal Pradesh as a green energy state.”
