Higher registration and renewal fee for passenger, commercial vehicles proposed by Indian Ministry
Vehicular pollution has been on the rise with the large number of vehicles plying on Indian roads. The Government of India wants to curb this and has proposed a higher registration fee for new passenger and commercial vehicles. In addition to this, the ministry also wants to keep a strict check on the old vehicles and has also proposed a higher renewal fees for vehicles that are more than 15 years old. While the decision of mandatory scrapping of vehicles that are more than 20 years old is still on hold, the government has proposed running frequent fitness checks on older vehicles. A final draft of the new changes is soon expected by Union Road Transport and Highways Minister, Nitin Gadkari.
According to the proposed scheme, the registration fee of a new vehicle will be increased from Rs 1,000 to Rs 5,000 making it a 400 per cent increase. However, in case of commercial vehicles like trucks, the same is expected to go up by 1,200 per cent wherein the amount will be increased from Rs 1,500 to Rs 20,000. While this is for new vehicle registration, the government has also tightened the policies for renewals wherein the passenger vehicle fee could go up to Rs 10,000 from Rs 1,000. In case of commercial taxis, the same will be increased to Rs 15,000 from the present Rs 1,000. The worst hit would be the trucks that could face a hike of Rs 40,000 from Rs 2,000, which is immensely steep. This government believes that such substantial renewal fees will discourage the owners from running trucks and commercial vehicles that are more than 15 years old, and also keep the release of harmful pollutants under check.
The Indian ministry did try to make scrapping of old vehicles as a mandatory decision starting 2020, but was opposed by the PMO. The latter proposed to let states take an individual call, which was not supported uniformly. And that is the reason, the Indian ministry is planning to levy hefty renewal fees and also frequent fitness tests. Additionally, the new proposal states that a certificate will be given to owners of old vehicles who can use the same to avail discounts on registration of new vehicles.
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