'After converting old vehicles into junk, there will be tax exemption on buying a new vehicle', know the plan of the government.
New Delhi: Union Minister Nitin Gadkari on Tuesday said that under the recently introduced National Vehicle Scrappage Policy, the tax on new vehicles purchased after converting old vehicles into scrap is related. and is considering the proposal to give concessions. Gadkari also said that the new scrap policy will reduce pollution. He said this while inaugurating the Scrap and Recycling Facility Center of Maruti Suzuki Toyotsu. This is the first such center to be approved by the government.
The Minister of Road Transport and Highways said that the scrap policy will increase the Goods and Services Tax (GST) revenue of both the Center and the states. I will discuss with the Finance Ministry how more tax related concessions can be given under the new policy. Under the new policy, the Center had said that the states and union territories will give up to 25 percent rebate on toll tax on buying a new vehicle after converting old vehicles into junk.
Gadkari said that he is also urging the GST Council to explore the possibility of what more incentives can be given under the new policy. The final decision in this regard will be taken by the Finance Ministry and the GST Council. The scrap policy will benefit all stakeholders as it will boost manufacturing, create jobs and generate revenue of up to Rs 40,000-40,000 crore for both the Center and the states under GST. The junk policy is important to curb pollution and create jobs.
Gadkari said that old vehicles cause more pollution than new vehicles. Hence they need to be removed. We expect the scrap policy to increase sales by 10 to 12 percent. The junk policy is also important for the economy. We will be able to get raw material at low cost. This can reduce the cost of production. The Center is planning to set up at least 3-4 vehicle recycling or junk centers in every district of the country. There will be 200-300 junk centers in the next two-three years.
Gadkari also said that the annual turnover of the auto sector is Rs 7.5 lakh crore and he aims to increase it to Rs 15 lakh crore in five years. India has set a target of net zero carbon emissions by 2070. I am sure the junk policy will help with this. Kenichi Ayukawa, Managing Director and Chief Executive Officer, Maruti Suzuki India Limited said that like many countries, we need a policy where 'fitness' of vehicles is checked every 3-4 years. We don't have to wait 15 years.