Government announces voluntary scrappage scheme for vehicles, Gadkari seeks GST rebate

The government on Thursday announced details of a voluntary scrappage scheme for vehicles older than 15 years in the country with a mix of incentives for consumers who opt to do away with their old cars and disincentives for those who choose to stay on with them.

In the scheme, which would effectively come into force only from June 1, 2024 when fitness tests will become mandatory for most cars and SUVs, the Ministry of Road Transport and Highways has advised automobile manufacturers to provide a 5 per cent discount on the purchase price of a new car for anybody who buys them after scrapping the old vehicle.

Similarly, it has also asked state governments to waive off registration fees on the new vehicle. This will be on top of the scrap value of the old vehicle, which could be anywhere around 4-6 per cent of the ex-showroom price of a new car. For heavy commercial vehicles, fitness tests will become mandatory from April 1, 2023.

The full article was originally published on Business Today