Published on: January 3, 2023

Vehicle Scrappage Policy

Vehicle Scrappage Policy

Why in news? The State government has issued an order for implementation of the Registered Vehicle Scrappage Policy of Karnataka -2022, envisaged to phase out old vehicles registered in Karnataka.


  • The policy states that out of approximately 14.3 lakh are estimated as fit for scrapping in the State.
  • Over the course of the next five years, an additional 66 lakh registered vehicles in the State will cross the age of 15
  • Substantial number of these end-of-life vehicles will be from the commercial category.
  • Both the central and state governments are trying to scrap vehicles that do not have a fitness certificate (FC) by endangering the environment and getting involved in accidents
  • There are vehicles under different categories including commercial, private and government.
  • Under each category, according to the age and robustness of the vehicles, the vehicles are scrapped

Primary objectives

  • Reducing pollution by scrapping old and unfit vehicles, improving passenger safety, boosting auto sector, generating employment, promoting recycling of vehicle scrap in a scientific manner and formalising the current informal vehicle scrappage industry in the State.

Dismantling and scrapping operations

  • National single window system or by calling expression of interest, measures would be taken to set up Registered Vehicles Scrapping Facilities (RVSF) in the State, to carry out dismantling and scrapping operations.
  • In Bengaluru, such scrapping facility centres will be at three or four points.
  • There is a proposal to provide RVFS at district level

Certificate of deposit

  • RVSF will issue “certificate of deposit” as evidence of transfer of ownership of the vehicle.
  • The certificate (CoD) will be tradeable and be a necessary and sufficient document of the owner to avail himself of incentives and benefits for purchase of a new vehicle as may be declared from time to time.
  • Prior to scrapping, owner of the vehicle has to give an undertaking on criminal record, litigation, and pending dues.
  • The RVSF should maintain the safe custody of cut pieces of chassis number for six months from the date of vehicle scrapping
  • Issue of certificate vehicles scrapping and a physical copy of all documents for two years and scanned copies for 10 years for record and examination during inspection.

Tax Concessions

State government has decided tax concessions given

  • For newly registered vehicles with submission of CoD shall be equivalent to 25% of tax paid on the scrapped vehicles (non-transport vehicles).
  • For transport vehicles, for newly registered vehicles against submission of CoD shall be equivalent to 15% of tax paid for a period of eight years from the date of registration of scrapping vehicles.
  • If the tax paid details are not found, the Transport Commissioner may issue circulars to determine the tax concessions whenever required
  • Two-wheelers registered before 1986 is 500.
  • For light motor vehicles registered before 1995 it is Rs3,000.
  • There is no need to visit RTOs.
  • It is mandatory to scrap government owned vehicles that are over 15 years.
  • Owners who voluntarily offer their vehicles for scrapping will get a rebate on the Motor Vehicle Tax for new vehicles upon submission of the scrapping certificate.