Old Truck Scrapping: Government May Propose Rebate Upto INR 5 Lakh
Published On Feb 07, 2017
The Budget for the year 2017 is around the corner, so is the policy for scrapping old vehicles. The Government of India looks really devoted to implementing the old vehicles scrapping policy this upcoming fiscal. This policy, once implemented, will mark the end of road for more than 28 million old vehicles plying in India.
Union Minister Nitin Gadkari has said that the proposal for the same would be sent to the GST council as soon as the ministry receives Cabinet's nod. Mr Gadkari, the Minister for Road Transport, Highways and Shipping, said, "The Ministry will try to bring the policy as early as possible. We will make a presentation before the Cabinet Secretary on February 9 and then before the PMO. After the Cabinet nod, a presentation will be made before GST Council."
He also confirmed about the same presentation been already made to Finance Minister Mr Arun Jaitley. The proposal, as per Mr Gadkari, includes INR 5 lakh relief to consumers looking forward to buy new truck worth approximately INR 15 lakhs. The proposal, if approved, will only be applicable for owners giving up on trucks coming under old vehicles scrapping policy.
Mr Gadkari said, "We propose a discount of about INR 2 lakh from manufacturers at the time of purchase while about INR 2.5 lakh concession in taxes by state and central governments for those purchasing new commercial vehicle on surrender of old." He added that finalizing the amount of tax concession would depend upon the decision taken by the GST Council.
The policy, as per him, would be a win-win situation for the consumers, the country, and automobile manufacturers as well. Not only would the policy, after implementation help in combating the pollution problem, it would also increase automobile sector's turnover from INR 4.5 lakh crore to INR 20 Lakh crore. Not to forget the recycled metals obtained through old vehicles scrapping resulting in economical new auto parts manufacturing.
