Junk Your Old Car And Get 5% Rebate On Brand New Vehicle

Picture courtesy www.deccanchronicle.com

Mumbai: In what will be a boon for the automobile sector as well as consumers, those who junk their old vehicles and buy a new one will receive a 5 per cent discount.

This will be as per the voluntary vehicle scrapping policy announced by Finance Minister Nirmala Sitharaman while presenting the Union Budget.

It provides for fitness test after 20 years for personal vehicles and 15 years in case of commercial vehicles.

“Automobile manufacturers will provide about 5 per cent rebate on new car purchases to consumers in lieu of scrapping of the old vehicle,” Road Transport, Highways and MSMEs Minister Nitin Gadkari was quoted as saying by PTI.

“There are four major components of the policy… Apart from rebate, there are provisions of green taxes and other levies on old polluting vehicles. These will be required to undergo mandatory fitness and pollution tests in automated facilities. For this automated fitness centres would be required throughout in the country and we are working in that direction,” Gadkari said.

He informed that automated fitness tests will be set up under public private partnership (PPP) mode, while the government will assist private partners and state governments for scrapping centres.