Start Scrapping Heavy Vehicles Older Than 15 Years: Finance Minister

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The decision to scrap vehicles older than 15 years will become mandatory and it will start start with heavy vehicles, says the Finance Minister, Arun Jaitley. The Ministry has suggested putting the proposed policy before a committee of secretaries.

This step will also help the country modernise its fleet of heavy vehicles. Nitin Gadkari, the Minister of Road Transport, Highways, and Shipping shipping said, "The Finance Minister said that 65 per cent of the pollution is caused by heavy vehicles which have completed 15 years. We will scrap this in the first phase."

"He has asked to make the policy for scrapping mandatory and not voluntary. The Finance Minister also said that instead of tax exemptions, provision of funds will be made in the budget."

"The Finance Minister said if GST Council is formed then tax structure will change. So we will have to take permission from the GST Council. He asked to finalise the policy and Committee of Secretaries will discuss the same. Instead of asking for tax exemption he said he will provide incentive in the budget."

"Suppose we give tax exemption for Rs 75,000, they (Finance Ministry) are saying we will give that amount to the person who scraps his vehicle. Don't ask for exemption in tax."

Also, the move to make vehicle scrapping mandatory will open a job sector by itself, and will open job opportunities for many.

Read more on: #auto news
Story first published: Thursday, August 25, 2016, 18:48 [IST]
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