Odisha announces arrear tax exemption for scrapping old vehicles 

The Odisha government on Monday announced that it would exempt the arrear tax and penalties for a period of two years in respect of vehicles older than fifteen years, provided the owners are willing to scrap the same at Registered Vehicle Scrapping Facility Centre(s) in the state. 

In a notification, the Commerce and Transport Department said, “Government have notified Odisha Motor Vehicle (Registration & Function of Vehicles Scrapping Facility) Policy, 2022 in accordance with the guidelines of Government of India,

Ministry of Road Transport & Highways issued vide their Notification No. GSR 653(E) dt. 23.09.2021 and GSR No. 695(E) dt. 13.09.2022 with an aim to reduce air pollution, improve road & vehicular safety, fuel efficiency & maintenance cost, to regularize the present system of informal and un-organized vehicle re-cycling facility & scientifically promoting recycling of vehicle scrap and above all, promoting circular economy.” 

“Government of India, Ministry of Finance, Department of Expenditure vide their letter No. F.No.44(1)PF-S /2024-25( CAPAX ) dt.09.08.2024 have announced a Scheme of Special Assistance under CAPAEX and directed to announce one-time waiver of pending liabilities for a further period of two years on vehicles older than 15 years and are scrapped at Registered Vehicle Scrapping Facilities Centre(s) in Odisha,” read the notification. 

“Therefore, in order to encourage vehicle owners to scrap their old vehicles, the Commerce & Transport (Transport) Department in exercise of the powers conferred by section 15 (1) of the Odisha Motor Vehicle Taxation Act, 1975 do hereby exempt the arrear tax and penalties thereof, for a period of two years in respect of vehicles older than fifteen years, where the owners are willing to scrap the same at Registered Vehicle Scrapping Facility Centre(s) in Odisha,” stated the notification.