States to be asked to give up to 25% road tax rebate under scrappage policy

The Centre will soon ask state governments to provide up to 25 per cent rebate on road tax for vehicles that are purchased after scrapping old vehicles under the new proposed scrappage policy, with Union minister Nitin Gadkari on Tuesday asserting that giving rebate is not a political but a public interest issue.

While it was not immediately clear whether the quantum of road tax rebates would be made mandatory under the National Automobile Scrappage Policy, the Road Transport and Highways Minister said the issues related to the road tax rebate are a subject under the central government.