New scrappage policy formulated, to be shared with stake holders by November 15
The Indian Government has been working on a scrappage policy to get rid of old vehicles. The draft has been formulated and will be shared with the public shortly, November 15 to be precise, confirmed the Finance Ministry. The new draft goes in lines with the Government's decision of setting up vehicle scrapping centres in different parts of the country. It is being said that the new scrappage policy is expected to offer disincentives for older vehicles and also a tremendous increase in the re-registration fee.
According to the proposal, buyers can avail a 50 per cent rebate on excise duty on purchase of new vehicles in exchange of their old vehicles. The regulation will also list out what kind of vehicles are eligible to be scrapped. The proposal also includes plans to set up five scrapping centres with a capacity of recycling up to five lakh vehicles. The first centre will be set up in Delhi within two years. Another aspect that the new policy will address is the excessive paperwork that is required for de-registering a vehicle. The Ministry plans to make the process simpler by eliminating the need for car owners to "run from pillar to post while visiting road transport offices.
The proposal also includes provisions for offering incentives for discarding old automobiles - the Ministry has proposed tax exemptions of up to Rs 30,000 for passenger vehicles and up to Rs 1.5 lakh for commercial vehicles.
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