Registration renewal fee for 15-year-old vehicles to be raised by 25 times

Earlier this year, the Ministry of Road Transport and Highways' draft policy on the scrappage of vehicles stated that buyers who scrap their old vehicles will not have to pay a registration charge for the new vehicle.

By:Published: September 26, 2019 12:49:13 PM
Photo: PTI

According to a gazette notification from the Ministry of Road Transport and Highways, the registration renewal fee of vehicles 15 years old could soon be hiked by 25 times. Currently, the fee is Rs 600 for a light motor vehicle (non-transport) which would inflate to Rs 15,000 once the proposal comes into effect likely early next year. The renewed registration of a 15-year-old vehicle will be valid for five years and will be renewable every five years. Similarly, the registration renewal fee for two- and three-wheelers would be increased from the current Rs 200 and Rs 300 to Rs 2,000 and Rs 3,000, respectively.

The transport ministry is also offering incentives to promote the currently under-consideration vehicle scrappage policy. Earlier this year, the Ministry of Road Transport and Highways’ draft policy on the scrappage of vehicles stated that buyers who scrap their old vehicles will not have to pay a registration charge for the new vehicle they purchase by presenting the scrapping certificate.

The said certificate can only be issued by an agency recognised by the government for it to be validated. The ministry has also asked auto manufacturers to offer benefits to such buyers suggesting that it would boost their sales as well.

Click to expand:

Also read: Scrap your old car and get free registration on new one: Details on new vehicle scrapping policy

Compared to buying a new vehicle, the registration fee will cost twice or more. For example, registration fee for a new motorcycle would be Rs 1,000 but that for a 15-year-old one will be Rs 2,000. In case of three-wheelers, the fee will be Rs 5,000 for a new vehicle and Rs 10,000 for an old one. For light passenger vehicles, Rs 5,000 for a new one and Rs 15,000 for an old one.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Latest Auto News