Union Minister Nitin Gadkari has stated that the Indian government is considering a proposal to provide more tax concessions on purchased vehicles after scrapping old models under the recently introduced scrappage policy. At the recent inaugural event of the government-approved Maruti Suzuki Toyotsu Scrapping and Recycling Facility, the union minister also stated that the scrappage policy will help in reducing pollution.
Under the new policy, the center stated that states and union territories will provide a tax of up to 25 percent tax rebate on road tax for vehicles purchased after scrapping old vehicles. In addition, Gadkari claims that he has also asked the GST Board to explore more about the incentives that can be offered under the National Auto Abatement Policy. However, the final decision will be taken by the finance ministry and the GST council.
Scrappage policy is believed to benefit stakeholders by boosting industrialization and job creation, as well as helping the center and state governments earn up to Rs 40,000 crore each year in GST. More details will be known in the coming days.
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