New Delhi: The government considers a proposal to provide more tax-related concessions on vehicles purchased after locking the old vehicle under the national national car scrappage policy which was just launched, the Union Minister Nitin Gadkari on Tuesday.
When inaugurating Maruti Suzuki Toyotsu grill and recycling that was approved by the first Government of India for the final vehicle (ELVS), Gadkari also said the scrappage policy would reduce pollution.
“GST revenues from both centers and countries will rise because of the scrappage policy …
I will discuss with the Ministry of Finance on how to provide more concessions (related taxes) with new vehicle scrappage policies,” he said.
Under new policies, the center said the state and region Union (UTS) would provide up to 25 percent of tax discounts on road taxes for vehicles purchased after locking the old vehicle.
Road transportation and Highways Minister said he also asked the GST council to explore what the incentives could be provided under the National Automobile Scrappage Policy.
“The final decision (in the provision of more incentives under the Scrappage Automobile policy will be taken by the Ministry of Finance and the GST Council,” he said.
The Minister added that the scrappage policy would benefit all stakeholders because it would encourage making, creating employment and helping the government and state government in producing each RS 40,000 crore at GST.
He said the scrappage policy would be one of the key factors to control pollution and create jobs.
“Old cars are far more polluting than new ones.
So, they need to be removed.
We hope sales will grow 10-12 percent because of the scrappage policy,” said Minister.
Prime Minister Narendra Modi has launched a national vehicle scrappage policy in August and said it would help remove vehicles that were not feasible and polluted and also promoted a circular economy.
The policy will provide a new identity to the Mobility and Indian automotive sector, said Modi.
Under this policy, people who provide their old vehicles to turn it into a memo will be given a certificate by the government.
People who have this certificate will not be charged a registration fee for purchasing new vehicles.
‘The government mulled more tax soup on new vehicles if …’
