NCR states likely to waive road tax on new clean-fuel trucks, buses under vehicle scrappage scheme

The Centre expects all four National Capital Region (NCR) states, Delhi, Haryana, Uttar Pradesh and Rajasthan to soon announce a complete waiver of road tax for buyers replacing old heavy commercial vehicles with cleaner alternatives under the recently approved scrappage programme.

Speaking at an event on cleaner freight mobility in New Delhi on Monday, Road Transport and Highways Ministry Additional Secretary Mahmood Ahmed said discussions with the four state governments have been completed and notifications are expected in the coming days or weeks.

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The proposed exemption will apply to buyers who scrap older pre-BS VI trucks and buses and purchase new vehicles powered by cleaner fuels. The incentive forms part of the Centre’s ‘Parivartan’ initiative, which was cleared by the Union Cabinet to accelerate replacement of ageing, polluting commercial vehicles.

Ahmed said vehicle manufacturers have also come on board to support the programme by offering around 8% discounts on the ex-showroom prices of eligible new commercial vehicles.

To improve participation, the ministry is working with district administrations across the NCR. Around 35-37 district collectors, along with lead bank coordinators, have been asked to engage directly with truck and bus owners and encourage them to adopt the scheme.

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Emphasising that the government’s clean mobility strategy is not limited to battery-electric vehicles, Ahmed said policymakers are pursuing multiple technology options to reduce emissions and modernise the commercial vehicle fleet.

“We don’t want to look at just one solution. A bouquet of solutions is the need of the hour, and the customer should ultimately decide,” he said, adding that the government’s approach is to encourage adoption through incentives rather than punitive measures.