Himachal Pradesh Initiates Bold Move to Boost Eco-Friendly Transportation

In a move to drive the adoption of eco-friendly transportation, the Himachal Pradesh state government has taken a significant decision, during a recent cabinet meeting, as the Vehicle owners are now eligible for a one-time waiver of Motor Vehicle Tax, along with associated interest and penalties, if they choose to scrap their old vehicles at a Registered Vehicle Scrapping Facility (RVSF). This attractive incentive will be valid for a one-year period, aiming to motivate owners to responsibly dispose of their vehicles in line with existing environmental norms.

Moreover, the State Government has also decided to offer a 25 percent concession on non-transport vehicles for up to 15 years and a 15 percent concession for transport vehicles for eight years. This concession applies 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 Thakur Sukhvinder Singh Sukhu emphasized upon the fact that this initiative not only prove favourable for the environment and reduce carbon footprints but will also act as a catalyst for the automotive industry and related sectors. The key objective behind the scrapping policy is to figure out those unfit vehicles and methodically recycle them. The eventual aim behind the scrapping policy is to eliminate the pollution in the environment caused by such vehicles. The unfit vehicles creating pollution is a big hindrance to the development of the country, stated the Chief Minister. Over and above, the tax concessions are seen as an investment in the state’s future well-being, with a broader impact on economic growth and environmental sustainability.”

The state government has set a target to transform Himachal Pradesh into a green energy state by March 31, 2026. Numerous measures have already been implemented in alignment with this goal, including provisions in the maiden budget of the current government to strengthen green initiatives. Scrapping an old vehicle at a Registered Vehicle Scrapping Facility offers environmental benefits through proper disposal of hazardous materials, recycling of components, and adherence to regulations, ensuring responsible and sustainable vehicle disposal practices.

The Chief Minister said, “Incentivizing vehicle scrapping is paramount, encouraging owners to opt for the environmentally friendly Registered Vehicle Scrapping Facility. This approach ensures a scientific and eco-friendly process for vehicle disposal.” He added, “Without such incentives, there’s a risk that vehicle owners may resort to the unorganized scrap market, undermining the state government’s determined effort to establish Himachal Pradesh as a green energy state.”