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More tax concessions for vehicles bought after scrapping old ones: Gadkari

Transport Minister Nitin Gadkari, Maruti Suzuki Toyotsu India Private Limited Chairman Kenichi Ayukawa, and Japan's Ambassador to India Satoshi Suzuki during the inauguration of Maruti Suzuki and Toyota Tsusho Group's first Vehicle Scrapping and Recycling unit in Noida. (AP)Premium
Transport Minister Nitin Gadkari, Maruti Suzuki Toyotsu India Private Limited Chairman Kenichi Ayukawa, and Japan's Ambassador to India Satoshi Suzuki during the inauguration of Maruti Suzuki and Toyota Tsusho Group's first Vehicle Scrapping and Recycling unit in Noida. (AP)

Transport Minister Nitin Gadkari said he is also requesting the GST Council to explore what more incentives can be provided under the National Automobile Scrappage Policy

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The central government is looking at a proposal to provide more tax-related concessions on vehicles that are purchased after scrapping old ones under the recently launched National Automobile Scrappage Policy, said Union Road Transport Minister Nitin Gadkari on Tuesday.

The vehicle scrappage policy will help reduce pollution, boost manufacturing and sales, as well as create jobs, Gadkari further said while inaugurating Maruti Suzuki Toyotsu India's first government-approved scrapping and recycling facility for end-of-life vehicles (ELVs) in Noida.

The Road Transport Minister further added that the scrappage policy will help both the Centre as well as state governments in earning up to 40,000 crore each in GST.

Also Read: Maruti-Toyota starts vehicle scrapping, recycling unit. Read more

“Old cars are much more polluting than new ones. So, they need to be phased out. We expect sales to grow 10-12  per cent due to scrappage policy," he said.

“The GST revenue of both the Centre and states will rise due to the scrappage policy... I will discuss with the finance ministry on how to provide more (tax-related) concessions under the new vehicle scrappage policy," Gadkari added.

The Centre had said that the states and union territories (UTs) will provide up to 25 per cent tax rebate on road tax for vehicles that are purchased after scrapping old vehicles under the scrappage policy.

Gadkari said he is also exploring with the GST Council what other incentives can be provided under the National Automobile Scrappage Policy.

Also Read: Vehicle Scrapping Policy: Govt releases list of incentives, disincentives

“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.

Prime Minister Narendra Modi had launched the national vehicle scrappage policy in August and had said it will help phase out unfit and polluting vehicles and also promote a circular economy.

The policy will give a new identity to India's mobility and auto sector, Modi had said.

Under this policy, people who give their old vehicle for turning it into scrap will be given a certificate by the government. People having this certificate will not be charged any registration fee on the purchase of a new vehicle.

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