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Junk your old car and get 5% off on new buy-Gadkari

In a wonderful news for consumers who are going to junk their old vehicles and buy a new one under the Vehicle Scrapping Policy , automakers will give about 5% rebate on the new purchase, Union minister Nitin Gadkari has said.The voluntary vehicle scrapping policy announced by Nirmala Sitaraman in the Union Budget for 2021-22 pertains to fitness test after 20 years for personal vehicles while commercial vehicles would need it earlier after the completion of 15 years.

“Automobile manufacturers will provide about 5% rebate on new car purchases” to the consumers in lieu of scrapping of the old, Road Transport, Highways and MSMEs Minister Gakdari told PTI.”There are four major components of the policy…Apart from rebate, there are provisions of green taxes and other levies on old polluting vehicles. These will be required to undergo mandatory fitness and pollution tests in automated facilities. For this automated fitness centres would be required through out in the country and we are working in that direction,” Gadkari said.

The new policy will result in increase in vehicle demand which in turn would increase the revenue. Also, ancillary industries would come up in large numbers thriving on junk vehicles,” the minister said. The minister initially told that about one crore polluting vehicles would go for scrapping.Automobile industry turnover which is Rs 4.5 lakh crore at present is likely to swell to Rs 10 lakh crore in years to come with India becoming an automobile hub.

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The government had plans to impose green tax on old polluting vehicles to protect the environment and decrease pollution while vehicles like strong hybrids, electric vehicles and those running on fuels like CNG ethanol and LPG will be exempted. Theincome collected through the green tax will be utilised in the fight against pollution. The transport vehicles older than eight years could be charged green tax at the time of renewal of fitness certificate at the rate of 10-25 per cent of road tax as per green tax proposal sent to states for consultations after cleared by the ministry.

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