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The Union ministry of road, transport and highways wants that those discarding old cars and purchasing new ones should be given tax concessions.
Minister Nitin Gadkari said his ministry plans to recommend to the finance ministry for the concessions under a scheme being prepared.
"We are also planning to import old cars from across the globe and recycle them near the ports. Ports like Kandla (Gujarat) have a good draft of around 20 metres. The plan is to set up eight to 10 industrial units there, which will boost employment," Gadkari said in New Delhi.
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The minister also said the new Road Transport and Safety Bill would be introduced in the next session of Parliament. The Bill proposes steep penalties of up to Rs 3 lakh along with a minimum seven-year imprisonment for death of a child in certain circumstances, besides huge fines for driving violations.
The incentives for discarding old cars could amount to Rs 25,000-30,000 to under the new policy. Under the policy, the customer has to surrender their car and get a certificate which enables him to get a discount on buying a new car. "In addition to this, we would recommend to the finance ministry to give some tax exemptions to the beneficiaries who surrender their old car and buy new car."
The policy is aimed at encouraging people to discard their old cars and purchase the new ones which also benefit the government in form of tax revenue. The aim is to promote replacement of old vehicles with modern ones with better emission standards. Large-scale scrap programmes have been introduced across the world. The policy would stimulate growth of the automobile industry and take inefficient, polluting vehicles off the road.
