UP mulls over higher rebate on vehicle registration fee

After a nudge from the Centre, the Uttar Pradesh government is weighing an increase in the discount on registration fees for vehicles purchased after scrapping of old ones, though it may not go up to the 50% level proposed by the Union government, officials in the know of the development said

- Brajendra K Parashar

The Centre has offered Rs 200 crore to Uttar Pradesh under the Voluntary Vehicle Fleet Modernisation Programme (V-VMP), popularly known as the Vehicle Scrapping Policy, on condition that the state raises its registration fee discount from the current 10-15 % to 50%. At present, U.P. offers a 10% rebate for commercial vehicles and 15% for private ones.

The guidelines for the incentive scheme for "Special Assistance to States for Capital Investment 2025-26" were issued on May 22.