Soon, if you scap your old car, you may get to see concession of as much as 50 percent on excise duty on buying a new car
New Delhi: Selling your more than 15 year old car and buying a new replacement may earn a premium for you. If the proposal of Road Transport and Highways Minister Nitin Gadkari is accepted by the Finance Ministry, you may get to see concession of as much as 50 percent on excise duty on buying a new car. Scrapping of your old car will no doubt also earn you income.
Currently, the excise duty slabs are 12.5 percent, 24 percent, 27 pe cent and 30 per cent, as applicable.
The industry body SIAM also proposed in its proposals for Budget 2016-17 that old vehicles of age 10-15 years could be retired through a single window fleet modernisation programme. It also proposed replacement incentives ranging from Rs 4,400 for two wheelers to Rs 90,000 for commercial vehicles.
SIAM said the total incentive required for scrapping 15-year-old vehicles, including two-wheelers, three-wheelers, passenger vehicles and commercial vehicles, could be a around Rs 56,665 crore and each new vehicle purchased against a scrapped vehicle will generate more tax revenue.