India’s forthcoming vehicle scrappage policy will offer no tax exemptions and any incentive will have to be provided by the automaker, said a government official.
The government has prepared a cabinet note on creating an ecosystem for voluntary and environment-friendly phasing out of unfit and old polluting vehicles, minister of state for roads V.K. Singh told the Rajya Sabha on Saturday.
The Union cabinet may approve the scrappage policy after the monsoon session of Parliament is over, said the official mentioned above.
“Incentives, if any, will have to be offered by OEMs (original equipment manufacturers),” the official said on condition of anonymity. Earlier, the Centre had urged states to give a rebate on road tax to vehicle buyers against the presentation of scrapping certificates.
Commercial vehicles that are 15 years old and private vehicles that…