Govt will soon encourage you to sell your old car, Here is how

Old vehicles, ranging from trucks to cars, and two wheelers to autorickshaws, are a major source of air pollution. But how can they be put away from Indian roads? You can’t just tell people to dump their old vehicles and buy new ones, can you? Well, that’s what the government of India is all set to do, but with added incentives for those who choose to scrap their old vehicles for new ones.

Old Car

The government’s readying up a “End of Life” program for cars, through the Union Budget of 2016. Now, “End of Life” essentially means that the government will give you some money when you scrap your old car, and buy a new one. The policy on this front is being worked upon, and could be announced during this year’s Union Budget. The road transport minister Nitin Gadkari, is already have said to met finance minister Arun Jaitley, in this regard.

Also see – What’s the government’s “Cash for clunkers” program all about

To make scrapping of cars more attractive to owners, the government has proposed a 50 % cut in excise duty for those who choose to scrap their old cars and buy new ones. Automakers will get incentives to produce more fuel efficient and low emission cars through attractive depreciation benefits for additional investments made for producing new cars. Car owners are likely to get benefits of up to 30,000 rupees to scrap cars older than 10 years, for new ones.

If enough vehicle owners come on board and start scrapping their cars for new ones, the auto industry could get a big boost, and along with it the economy. However, scrapping your old car for just a few thousand rupees of excise benefits may not really make the most sense if you want the best bang for your buck. For that, you’ll have to read this-> Get smart, get a lateral upgrade

Via ETAuto