ZeeBiz report gets thumbs-up from govt: Scrappage policy green flagged by Modi Cabinet; Anil Singhvi decodes impact on owners, auto-makers | Explained
Yet another Zee Business' news has been validated at the government level. This time it is on Scrappage Policy. This policy has been cleared by the PM Narendra Modi led Cabinet. What does this mean for the vehicle buyers? Zee Business Managing Editor Anil Singhvi not only explains the policy but also tells what he expects from it
Yet another Zee Business' news has been validated at the government level. This time it is on Scrappage Policy. This policy has been cleared by the PM Narendra Modi led Cabinet. What does this mean for the vehicle buyers? Zee Business Managing Editor Anil Singhvi not only explains the policy but also tells what he expects from it.
The viewers must understand what this Scrappage Policy is and why is it being introduced. Through this policy the government intends to remove all older vehicles after a certain time be it government owned vehicles or private vehicles including passenger cars, trucks and other commercial vehicles.
See Zee Business Live TV Streaming Below:
The primary objective is to remove the old vehicles as they are a big cause of pollution.
The automobile companies are seeing a business opportunity in this. This policy should ensure that the vehicles are automatically removed or the government levies so much tax on it that the owner does not find it feasible to run it on the roads.
Watch Zee Business Tweet Video Below:
ज़ी बिज़नेस की खबर पर लगी मुहर…#ScrappagePolicy को कैबिनेट से हरी झंडी
अनिल सिंघवी- ऑटो कंपनियों के लिए अभी तक कुछ खास नहीं, ग्राहकों के लिए नई गाड़ी खरीदने पर इंसेटिव और पुरानी गाड़ी पर पेनाल्टी को लेकर तस्वीर हो साफ@AnilSinghvi_ @nitin_gadkari @MORTHIndia @OfficeOfNG pic.twitter.com/qGZ5ZkQMyK
— Zee Business (@ZeeBusiness) January 27, 2021
The policy is being framed around these considerations. On one side, if a person is buying a new vehicle, he should be incentivised. This is good for automobile companies as they will be able to sell more vehicles. For government, as well as the countrymen at large, there will be a check on pollution.
What has happened?
The scrappage policy for government vehicles has come. A discussion paper has come for the private vehicles. With this policy, the government has indicated that the scrappage policy is not far away. The channel in its earlier report had said that the Government will introduce it in Budget or even before. That has been validated, Singhvi said.
Under this policy, the vehicles will be removed from the road after 15 years. The rules will apply for both states and Centre. There will be a green tax imposed and this will be between 10 and 25 per cent of the road tax. There will be lower green tax for public vehicles.
Commercial Vehicles like trucks are the ones that ply maximum on the roads and they are major source of pollution. If this discussion paper is implemented then there is not much incentive for the companies, Singhvi opined calling it negative.
He also said that there should be more clarity on the private vehicles, when the final policy comes. There is also no indication of incentive in the discussion paper. The key trigger rests on how much incentives is the person getting for buying a new vehicle or the penalty for not buying one.
The government is not immediately putting a green tax on such vehicles, which is a problem area, he said.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.