Under the Scrapping Policy, Punjab government will provide Motor Vehicle Tax rebate on purchase of new vehicles by the owners of scrapped vehicles.

As per the decision taken by the Punjab Cabinet led by Chief Minister Bhagwant Mann on Friday, in consonance to the Scrapping Policy introduced by the Union Road Transport and Highways Ministry, the state government will provide Motor Vehicle Tax rebate on the purchase of new vehicles by owners of scrapped vehicles.

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Under it, a rebate of up to 15 per cent will be given to the transport vehicle owners and 25 per cent to non-transport vehicle owners in Motor Vehicle Tax under Section 13(3) of the Punjab Motor Vehicle Taxation Act, 1924.

An official spokesperson said that as per this environment friendly decision, the owners of transport vehicles can take advantage of this scheme up to eight years from the registration of their vehicle and owners of non-transport vehicles up to 15 years from the registration of their vehicle.

When the vehicle is scrapped by the vehicle owner, the vehicle will be purchased by the scrapper who will issue a ‘Certificate of Deposit’ to the vehicle owner, which will be deposited with the concerned licensing authority and the owner of the vehicle will get the exemption on motor tax, he added.

Meanwhile, in order to ensure proper maintenance of the government schools across the state, the Cabinet also gave green signal for implementation of a state scheme to ensure upkeep of government schools.

Under this scheme requisite funds will be provided by the Government of Punjab for the sanitation, cleanliness, security and smooth administration of the school campuses. This will help the school administration to run the schools in a smooth and hassle free manner to impart quality education to students.

The Punjab Cabinet also approved the policy for disbursement of discretionary grants by the Chief Minister and Cabinet Ministers for creation and repair of existing basic infrastructure, environment improvement and fulfilling the basic needs of the poor residing in Punjab.

As per the decision, the CM will have Rs 5 crore in his discretionary quota whereas the Cabinet Ministers will have Rs 1.50 crore each in their discretionary quota during a financial year.