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New policy may offer 8-12% cut in cost of new cars

As per the draft policy, total potential vehicles to be replaced are nearly 28 million

Policy Pulse
Publish Date: Jul 7 2016 12:28PM | Updated Date: Jul 7 2016 5:19PM

New policy may offer 8-12% cut in cost of new cars

Demo photo

 

Looking to get over-11-year-old polluting vehicles off  roads, the Ministry of Road Transport and Highways has submitted a new policy to the Finance Ministry to seek geen signal. 

 
Proposed proposal provides incentives worth 8-12 per cent of the cost of a new vehicle in lieu of surrendering the old ones. 
 
Benefits under the proposed policy will come in three forms, which are scrap value from the old vehicle, a special discount by the automobile manufacturer and a partial excise duty exemption. 
 
While inviting, suggestions for comments from general public and all stakeholders on the draft policy, the Ministry of Road Transport and Highways has said the proposal will be applicable to the vehicles bought on or before March 31, 2005. 
 
As per the draft policy, total potential vehicles to be replaced with this definition are nearly 28 million.