The Ministry of Road Transport and Highways (MoRTH) has proposed a concession of 25 per cent on road tax for personal vehicles and 15 per cent for transport vehicles against a scrapping certificate. The new scrappage policy is expected to come into effect from October 1 this year. According to the new proposal, if the vehicle is registered against submission of "Certificate of vehicle scrapping", the concession in the motor vehicle tax will be up to 25 percent, for non-transport vehicles and up to 15 percent for transport vehicles. The government will give these concessions for eight years for transport vehicles, and for 15 years for private vehicles. In addition, a 5 per cent discount will be given on purchase of a new vehicle against the scrapping certificate. The ministry has also invited suggestions on the draft rules over the next month after which the final notification will be issued.