Center will ask states for road tax exemption of up to 25% under the National Automobile Scrappage Policy
The central government on Tuesday said state governments will be asked to offer road tax exemption of up to 25 per cent for private vehicles purchased after scrapping old vehicles under the National Automobile Scrappage Policy.
For commercial vehicles purchased after scrapping old vehicles, the discount can be up to 15 per cent.
“As far as road tax (exemption) is concerned, it is not an advisory, we are going to change the rules (to provide road tax exemption up to 25 per cent for personal vehicles and up to 15 per cent for commercial vehicles). For) Amit Vardan, Joint Secretary in the Ministry of Road Transport and Highways, said in a press conference, “On buying a new car over dismantling old vehicles).
He also emphasized that the central government has the power to decide the principles of taxation in the concurrent list.
“We are authorized under the Concurrent List to decide the principles of taxation. So, we are making changes in the rules, and the final rules will come out soon,” he said.
In March, Road Transport and Highways Minister Nitin Gadkari told Parliament that state governments may be advised to offer road tax exemptions of up to 25 per cent for private vehicles and up to 15 per cent for commercial vehicles.
Acknowledging that some states have expressed concern over the proposed exemption, Vardan said the ministry has allowed those states to pay road tax on new vehicles after rebate of up to 25 per cent for personal vehicles and up to 15 per cent for commercial vehicles. Successfully convinced to offer discount. Old.
In the press conference, Gadkari said that the issues related to exemption in road tax are under the central government.
“The revenue of the states will increase after the implementation of the National Automobile Scrappage Policy,” he said.
Clarifying that the issue of road tax exemption is not political, Gadkari said it was a public interest issue and hoped that all states would cooperate with the Centre.
.