Red eye against vehicle owners who do not pay tax in the "Registered Vehicle Scrapping Facility"
RVSF scheme implemented for 8-year-old vehicles
In Dahod district, 2534 vehicles older than 8 years are pending tax collection of Rs. 4.74 crore in the books of the vehicle department. Despite repeated instructions, the administration has now turned a red eye against owners who do not pay tax. If the vehicles of drivers who do not take advantage of the "Registered Vehicle Scrapping Facility" (RVSF) scheme implemented by the Gujarat government and do not pay the outstanding tax are caught by the RTO, strict action will be taken to send them directly to scrap. The Government of India has implemented an ambitious “Vehicle Scrappage Policy” to control the rising pollution in the country, improve road safety and give a new impetus to the automobile industry. Under this policy, authorized scrapping centers have been started to convert old and unfit vehicles into scrap using a scientific method in a way that does not harm the environment. Vehicle owners who voluntarily get their old vehicles scrapped under this scheme are given significant financial incentives by the government and automobile manufacturers.
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What are the benefits provided under the scheme?
If the tax is due and the vehicle is scrapped, various benefits are provided. In this, the value of the vehicle scrap, which is generally 4 to 6 percent of the original ex-showroom price of the vehicle, is directly given to the owner. In addition, a deposit certificate is issued by the scrapping center. On showing this certificate, automobile companies give an additional discount of up to 5 percent on the purchase of a new vehicle.
Tax, penalty, interest and fine waived if scrapped
The Gujarat government has implemented a special scheme to encourage old vehicle owners. If vehicles like goods vehicles, buses, maxi cabs and construction equipment that are more than 8 years old are scrapped at a government-approved RVSAC center between April 30, 2026, then the outstanding tax, penalty, interest and other fines on such vehicles will be waived. If found guilty, they will be sent for scrapping and if the remaining tax is not paid, an encumbrance will be imposed on the property.
