Union Minister Nitin Gadkari said on Tuesday said the Central Government was considering a proposal to provide more tax-related concessions on vehicles that were purchased after scrapping old vehicles. The move was being initiated under the National Automobile Scrappage Policy, which was launched recently.
Nitin Gadkari, while inaugurating Maruti Suzuki Toyotsu India’s first government-approved scrapping and recycling facility for end-of-life vehicles (ELVs), said the scrappage policy would help check air pollution.
He said the scrappage policy would help increase the GST revenue of both the Centre and states. "I will discuss with the Union Finance Ministry on how to provide more (tax-related) concessions under the scrappage policy,” the minister said.
What the policy is all about
Under the new policy, the Centre had said the states and Union Territories (UTs) will provide up to 25 per cent tax rebate on road tax for vehicles that are purchased after scrapping old vehicles.
The minister says the scrappage policy will benefit all stakeholders as it will boost manufacturing, create jobs and help both Centre as well as state governments in earning up to Rs 40,000 crore each in GST. The scrappage policy will be one of the key factors to control pollution and create jobs.
Was launched in August
Prime Minister Narendra Modi had launched the national vehicle scrappage policy in August and had said it would help phase out unfit and polluting vehicles and also promote a circular economy. The policy will give a new identity to India’s mobility and auto sector, Modi had said.
Under this policy, people who give their old vehicle for turning it into scrap would be given a certificate by the government.
-PTC News with agency inputs