The Government of India has announced the much-awaited vehicle junk policy under which more than 15 years old vehicles will be scrapped and encouraged to buy new vehicles.
This policy to encourage the purchase of new vehicles by discouraging the use of old vehicles will be like a ‘cash scheme for junk’ in the US and European countries. The scheme was launched with a view to boost sales of new vehicles during the economic crisis of 2008-09.
Union Road Transport and Highways Minister Nitin Gadkari has said that the vehicle junk policy is expected to generate an additional investment of Rs 10,000 crore and create 35,000 new jobs.
He has claimed that “through this scheme, an attempt has been made to remove many problems simultaneously.” This will increase business and employment, while the pollution caused by old vehicles will also be reduced.”
Vehicle manufacturers have long been demanding from the government to encourage cars and truck owners to convert their old vehicles into junk and buy new vehicles. This will help vehicle companies to increase sales.
Nitin Gadkari said that he has requested Finance Minister Nirmala Sitharaman to give concession in Goods and Services Tax (GST) for the customers taking advantage of the junk policy.
Nitin Gadkari said, “We have estimated that there will be an additional income of 30 to 40 thousand crore rupees from the purchase of new vehicles. In such a situation, there can be scope for giving concession in GST.”