Union Budget 2021-22: Highlights For The Automobile Industry
- Feb 1, 2021
- Views : 21578
The Union Budget 2021-2022 saw the announcement of the Voluntary Vehicle Scrapping Policy. Now, the Union Minister for Road Transport and Highways, Nitin Gadkari, has announced that carmakers will offer a 5 percent rebate on the purchase of a new car if the customer has scrapped their old vehicle.
When this policy was announced, only a few details were revealed. It basically stated that if your car crosses the age of 20 (15 for commercial vehicles), it needs to get a fitness certificate. If it fails the test, it has to be scrapped. This policy was approved in the Union Budget 2021 and will be effective from April 1, 2022.
Revealing further details, Gadkari said, “There are four major components of the policy. Apart from the 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 the country and we are working in that direction.”
The Ministry of Road Highways and Transport (MoRTH) had also proposed a green tax that will come into effect from April 2022. Vehicles over 15 years old will have to pay a green tax on renewal of registration certificate. Cities with higher levels of pollution will charge a larger amount (50% of road tax). The tax will also vary depending on the type of fuel. EVs, strong hybrids, and CNG vehicles will be exempted from the green tax.
Gadkari hopes this policy will generate employment opportunities and help with the recovery of the automotive sector which has been ailing since before the pandemic. The automated fitness centres will be set up under public-private partnerships. Driving a vehicle that has failed the test will result in a heavy fine as well as impounding.
Union Budget 2021-22: Highlights For The Automobile Industry
Volkswagen’s Strategy to ‘Accelerate’ Its EV Drive
New Mandatory Dual-Airbag Rule: Maruti WagonR, Hyundai Santro,...
New Tata Safari 2021 Off To A Flying Start, Waiting Period Already Up...
Are Maruti Suzuki’s Strong Hybrid Powertrains The Best Engine...
Mahindra XUV 3XO (XUV300 Facelift) Launched With Significant Design...
Tata Curvv: A Much Clearer Look At Its Interior Ahead Of Its Unveiling
2024 Mahindra XUV 3XO Interior Revealed: Old vs New Compared
Overview In 10 Images: Mahindra XUV 3XO Mid-Spec MX3 Variant
5 Features Upcoming 2024 Maruti Suzuki Dzire Is Expected To Get Over...
India's largest automotive community