New Delhi: The government is considering a proposal to give more tax related concessions. vehicles that are bought later End Used vehicles under the recently launched National Automobiles scrappage policy, central minister Nitin Gadkari said on Tuesday.
Inaugurating Maruti Suzuki Toyotsu India’s first government-approved scrapping and recycling facility, for end-of-life vehicles (ELVs), Gadkari also said that the scrappage policy is going to reduce pollution.
“GST revenue for both the Center and the states will increase due to the scrappage policy. I will discuss with the finance ministry how to provide more (tax-related) concessions under the new vehicle scrapping policy,” he said.
Under the new policy, the Center had said that the state and Union Territory (UT) will provide tax exemption of up to 25 per cent on road tax for vehicles purchased after scrapping of old vehicles.
The Road Transport and Highways Minister said that he is also requesting the GST Council to find out what other incentives can be given under the National Automobile Scrappage Policy.
“The final decision (on providing more incentives under the National Automobile Scrappage Policy) will be taken by the Finance Ministry and the GST Council,” he said.
The minister said the scrappage policy will benefit all stakeholders as it will boost manufacturing, generate employment and help both the central and state governments to earn up to Rs 40,000 crore in GST.
He said that the scrappage policy would be one of the major factors in controlling pollution and generating employment.
“Used cars are much more polluting than new cars. Hence, they need to be phased out. We expect a 10-12 per cent increase in sales due to the scrappage policy,” the minister said. he said.
Prime minister Narendra Modi The National Vehicle Junk Policy was launched in August and said that it will help in the phased removal of unsuitable and polluting vehicles and also promote a circular economy.
Modi had said that the policy will give a new identity to India’s mobility and auto sector.
Under this policy, those who give their old vehicle to be converted into junk will be given a certificate by the government. No registration fee will be charged for buying a new vehicle from people having this certificate.
Inaugurating Maruti Suzuki Toyotsu India’s first government-approved scrapping and recycling facility, for end-of-life vehicles (ELVs), Gadkari also said that the scrappage policy is going to reduce pollution.
“GST revenue for both the Center and the states will increase due to the scrappage policy. I will discuss with the finance ministry how to provide more (tax-related) concessions under the new vehicle scrapping policy,” he said.
Under the new policy, the Center had said that the state and Union Territory (UT) will provide tax exemption of up to 25 per cent on road tax for vehicles purchased after scrapping of old vehicles.
The Road Transport and Highways Minister said that he is also requesting the GST Council to find out what other incentives can be given under the National Automobile Scrappage Policy.
“The final decision (on providing more incentives under the National Automobile Scrappage Policy) will be taken by the Finance Ministry and the GST Council,” he said.
The minister said the scrappage policy will benefit all stakeholders as it will boost manufacturing, generate employment and help both the central and state governments to earn up to Rs 40,000 crore in GST.
He said that the scrappage policy would be one of the major factors in controlling pollution and generating employment.
“Used cars are much more polluting than new cars. Hence, they need to be phased out. We expect a 10-12 per cent increase in sales due to the scrappage policy,” the minister said. he said.
Prime minister Narendra Modi The National Vehicle Junk Policy was launched in August and said that it will help in the phased removal of unsuitable and polluting vehicles and also promote a circular economy.
Modi had said that the policy will give a new identity to India’s mobility and auto sector.
Under this policy, those who give their old vehicle to be converted into junk will be given a certificate by the government. No registration fee will be charged for buying a new vehicle from people having this certificate.
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