Vehicle scrapage policy soon to be revealed to cut auto sector down

Mumbai, Ta. September 27, 2019, Friday

Considering the ongoing slowdown in the auto sector in the country, the central government is likely to announce a vehicle scrapage policy soon. The policy will be announced as part of the increase in demand for new vehicles, official sources said. The policy was originally formulated four years ago but has been extended.

As per earlier plans, it was proposed to consider ten year old vehicles eligible for scrap but later this period was extended to twenty years. The government is planning to provide relief to excise duty to buyers of new vehicles by scraping their vehicles. In addition, the scrap value of the vehicle will also benefit.

This policy has received theoretical approval from the Prime Minister's Office. Eligibility for the Serpent The number of vehicles for scrap in the country from 6 years to 4 years has dropped significantly. The scheme is being implemented to prevent vehicular pollution. The scheme was designed with the original truck operators in mind, sources said.

The government is planning to implement this policy from the next financial year. The industry is expecting the policy to be implemented effectively in view of the current slowdown in the auto sector.

With the implementation of GST, the demand for trucks from their favor has decreased as the time of truck operators in the country has reduced. The new policy also calls for the inclusion of two-wheeler Tatha car. With the increase in demand for vehicles, the rate of GST is expected to decrease at present.

Structural improvements are also being blamed for the delay in implementing the policy for scrap vehicles. There is not enough infrastructure in the country to dispose of old vehicles, sources added.