Good news, UP car buyers! Govt offers up to 75% tax exemption on scrapping old vehicles

With the winter season on the horizon when pollution hits peak in northern India, the Uttar Pradesh government has announced significant tax exemptions for scrapping end-of-life vehicles. The new policy offers up to 75 percent tax relief, specifically targeting older vehicles, as part of the state's broader initiative to curb emissions and improve air quality, particularly in the National Capital Region (NCR).

According to an official order issued by L Venkateshwarlu, Principal Secretary (Transport), vehicles registered before 2003 will benefit from a 75 percent tax exemption if scrapped, while those registered between 2003 and 2008 will receive a 50 percent tax cut.
Besides that, diesel vehicles registered in NCR districts between 2008 and 2013 are also eligible for the 50 percent exemption.


This tax relief is available for a limited time, from September 11, 2024, to March 10, 2025. During this six-month window, vehicle owners who choose to scrap their vehicles at a registered Vehicle Scrapping Facility Centre will also have any penalties for unpaid dues waived, providing additional financial incentives.
The move comes in response to the growing number of ELVs in the region, with an estimated 150,000 such vehicles, including 25,000 commercial ones, which have not cleared their tax dues. Private vehicles typically pay taxes as a lump sum, while commercial vehicles are taxed quarterly, biannually, or annually.
On the other hand, Uttar Pradesh government’s recently-introduced hybrid car policy offers a full waiver on registration tax for strong hybrid and plug-in hybrid vehicles. This can save buyers up to Rs 3.50 lakh, with models like the Maruti Suzuki Invicto and Toyota Innova Hycross saving over Rs 3 lakh, and the Maruti Suzuki Grand Vitara, Toyota Hyryder, and Honda City saving over Rs 2 lakh.
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