The government is thinking about the proposal on the concession of tax on the vehicles that are bought after scrapping old vehicles beneath the launched national automobile Scrappage Policy, Union Minister Nitin Gadkari.
Final Call by FinMin, GST Council
- Beneath the national automobile scrappage policy, the union government mentioned that the states and the Union territories will provide 25% off on the road tax for the vehicles which are bought post scrapping old vehicles.
- Union road transport and highways minister Nitin Gadkari mentioned that he is indeed asking for the GST official to check what more incentives can be furnished beneath the policy.
- The final decision shall have opted through the Finance Ministry and the GST council.
During the inauguration of Maruti Suzuki Toyotsu India’s first government-approved scrapping and recycling facility towards end-of-life vehicles (ELVs), Gadkari specified that the scrappage scheme will be going to diminish the pollution.
“The GST revenue of both the Centre and states will rise due to the scrappage policy… I will discuss with the Finance Ministry how to provide more (tax-related) concessions under the new vehicle scrappage policy, he added.”
Beneath the latest scheme, the centre mentioned that the states and the UTs shall furnish 25% tax exemptions on the road tax towards the vehicles which the bought post to the scrapping old vehicles.
The road transport and highways minister mentioned that he is indeed asking for the GST official to find out more incentives that could be furnished beneath the scheme of National Automobile Scrappage.
“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.”
Minister specified that the scrappage policy shall be laid to the advantage of all the stakeholders as this will enhance manufacturing, generate jobs, and assist state and union government in earning Rs 40,000 cr respectively in GST. He added that the scrappage scheme shall be an essential characteristic to regulate pollution and generate jobs.
“Old cars are more polluting than new ones. So, they need to be phased out. We expect sales to grow 10-12% due to scrappage policy, the minister added. The old vehicle generates much more pollution and makes the environment polluted said, minister Gadkari. Scrapping is important for the economy. We will get all raw materials at lower cost by which we can lower output cost, he added.”
