Vehicle Scrappage Policy:
The Government is considering a proposal to give buyers additional concessions on buying new vehicles after scrapping of their old vehicles.
- The final decision (on providing more incentives under the National Automobile Scrappage Policy) will be taken by the finance ministry and the GST Council.
About the Vehicle Scrappage Policy:
- Old vehicles will have to pass a fitness test before re-registration and as per the policy government commercial vehicles more than 15 years old and private vehicles which are over 20 years old will be scrapped.
- As a disincentive, increased re-registration fees would be applicable for vehicles 15 years or older from the initial date registration.
- The state governments may be advised to offer a road-tax rebate of up to 25% for personal vehicles and up to 15% for commercial vehicles to provide incentive to owners of old vehicles to scrap old and unfit vehicles.
- The vehicle scrapping policy is aimed at creating an eco-system for phasing out unfit and polluting vehicles in an environmentally friendly and safe manner.
- The initiative will promote a circular economy and make the process of economic development more sustainable and environment friendly.
- The policy will also bring in investments of around Rs 10,000 crore and create 35,000 job opportunities.