Toyota Kirloskar Motor on Monday asked the Indian government to consider coming out with a vehicle scrapping policy for old vehicles and extended tax benefits on Electric vehicles. This message comes ahead of the Indian Budget which will be present on the first of February.
Naveen Soni Senior Vice President for Toyota’s JV in India, TKM said that “We would like the Budget to spur demand without putting any additional burden on the government exchequer; one way to achieve this is by realising the scrappage policy for all old vehicles, the draft policy of which has been shared by the government The auto industry is willing to share its portion towards realising such scrappage policy, which will eventually have a more sustainable impact on the environment”
Read About Vehicle Scrapping Policy: Vehicle Scrapping Policy In India | Explained
Vehicle Scrapping Policy has been the works from 2018 is expected to give people who scrap their old vehicles adequate compensation. The policy is expected to launch this year. It involves picking up vehicles which are 15 years or older and scrapping them as they cause more harm to the environment. To give people an incentive to scrap vehicles government will be providing money for scrapping vehicles which albeit being way lower than what you bought your car for but will still be better than nothing.
“This kind of stimulus will not have a significant impact on the government revenues in the immediate future while it can effectively improve consumer sentiment and help pull forward demand during the difficult period of BS-VI transition that will see prices of most vehicles go up, These purely temporary measures could help lead a phased improvement in the overall sentiments and revival of demand” Naveen Soni added.
Popular Read: Vehicle Scrapping Policy Out For Public Feedback
In last years budget finance minister had already proposed a 1.5 Lakh INR income tax deduction on the interest paid for purchasing an Electric car.
