Medilytix Bureau: The road transport ministry is exploring the possibility of extending tax concessions to operators scrapping old and polluting commercial vehicles.
For roads, transport and highways, Nitin Gadkari said he has consulted with the minister for steel, Jyotiraditya Scindia, regarding putting forth a proposal to the finance ministry to consider some concession in GST rates for those purchasing new commercial vehicles after scrapping old ones.
“The pollution from one old truck is equal to the pollution of 15 new trucks, so it is imperative we scrap them. I request vehicle makers to offer a discount to a buyer who has a scrappage certificate. Alternatively, I am discussing with the steel ministry to request the finance ministry to offer a GST tax benefit on the scrapping of vehicles, “said Gadkari at the 62nd Annual Convention of the Society of Indian Automobile Manufacturers (SIAM).
Gadkari said overall, more than 10 million vehicles are scrappable. He said there is a potential for using copper, aluminium, steel, and rubber scrap, recycling them, and using them for self-consumption, which can save costs by 30%. The minister stated that he wishes to discourage the sale of gasoline and diesel vehicles.