4-6% Scrap Value, 25% Rebate on Road tax, 5% Discount on New Vehicle purchase - Gadkari Announces Scrappage Policy In Loksabha
Key Points
Incentives
Scrappage policy is here, Yes you read that right. The Minister for Road Transport & Highways Shri Nitin Gadkari ji tabled an outline of the upcoming vehicle scrappage policy in Lok Sabha today. As per the minister, the Scrappage Policy will not only help in curbing the pollution by taking old and unmaintained vehicles off the roads, at the same time it will boost the economy by putting newer ones on the road.
The minister said that he has been in discussions with the manufacturers to give a 5 percent discount to consumers who provide the scrappage certificate while buying new cars. In addition to this, there would be other incentives from the government’s side, including a 25 percent rebate on road-tax for personal vehicles, and 15 percent for commercial vehicles. A scrap value of the vehicle ranging from 4-6% will be given to the owner if they choose to scrap the vehicle, the minister said.
Calling it a “WIN-WIN” policy for all stakeholders, The minister said the scrappage policy will reduce pollution, increase demand for newer fuel-efficient vehicles and increase GST revenue for the states and the central govt. The minister also said he is in talks with the finance minister and GST council for a reduction in GST for people who have scrapped the vehicles.
