– More tax-related concessions might be offered on vehicles purchased after scrapping old models
– Expected to help in boosting jobs, and helping state and centre governments in the form of GST earnings
Union Minister, Nitin Gadkari has stated that the Indian government is reportedly considering a proposal to provide more tax concessions on vehicles that are purchased after scrapping old models under the recently introduced scrappage policy. At the recently held inaugural event of the government-approved Maruti Suzuki Toyotsu scrapping and recycling facility, the union minister also stated that the scrappage policy will help in reducing pollution.
Under the new policy, the Centre has stated that the states and union territories will provide up to 25 per cent tax rebate on road tax for vehicles that are purchased after scrapping old vehicles. Furthermore, Gadkari states that he has also requested the GST council to explore more about the incentives that could be provided under the National Automobile Scrappage Policy. That said, the final decision will be taken by the finance ministry and the GST council.
It is believed that the scrappage policy will benefit stakeholders as it will boost manufacturing, create jobs, as well as help the centre and the state governments in earning up to Rs 40,000 crore each year in GST. More details in this regard will be known in the days to come.