Budget 2023: Nirmala Sitharaman puts spotlight on scrapping old vehicles

Finance Minister Nirmala Sitharaman announced the Budget 2023 and laid special emphasis on the scrappage vehicle policy. The minister said that more funds will be allocated towards scrapping old vehicles by the central government. She further said that the centre will support state governments to scrap old vehicles as well as ambulances.

In her budget speech for 2023, Nirmala Sitharaman said, “In addition to vehicle scrappage policy announced in Budget 2021-22, more funds have been allocated now to support efforts to scrap old vehicles under the central government. States will also be supported to help them scrap old vehicles and old ambulances."

The Scrappage Policy was announced during the previous budget session and aims to phase out vehicles older than 15 years in a bid to boost clean-energy vehicles and new car sales. The government has already announced that it plans to scrap nine lakh vehicles owned by central and state governments, transport corporations, and public sector undertakings from April 1, 2023.

Under the Scrappage Policy 2022, the centre and state governments will provide 25 per cent tax rebate on the road tax for vehicles that are purchased by scrapping old vehicles. The government also plans to set up a scrapping facility within 150 km from each city centre across the country to facilitate accessibility.