Government proposes 50 per cent rebate for new cars for consumers disposing older vehicles

The draft norms for an ‘end of life’ policy for vehicles are nearly ready with the central government and will soon be available for comments and suggestions by various stakeholders, according to road transport minister Nitin Gadkari.

The norms will ensure a 50 per cent rebate in excise duty for new vehicles for buyers who surrender their existing polluting ones. “The draft of the Volountary Vehicle Fleet Modernisation policy is ready and we will send it to the cabinet for approval,” said Gadkari.

The policy has been framed keeping the high pollution levels in India. By phasing out old vehicles, the government hopes that consumers will buy efficient and less-polluting new cars and trucks. The road transport ministry has sought the endorsement of the finance ministry, which will have to approve the 50 per cent rebate on excise duty for new cars bought by such consumers.

The government had recently announced that India will leapfrog to Bharat Stage VI fuel norms from April 1, 2020, skipping the BS-V norms (equivalent to Euro-V), in a bid to tackle pollution.