If you are planning to junk your old car, there is a possibility that the government will offer discount up to 15% on new vehicles.The road transport and highways ministry has prepared a policy under which anyone voluntary scrapping their four-wheelers older than 12 years (pre-Bharat stage II vehicle) will get up to 15% discount (including manufacturer discount and rebate on excise duty) on new vehicles.
This proposal comes amid automakers are hiking car prices after Finance Minister Arun Jaitley announced a ‘green tax’ in his Budget 2016-17.
Under the proposed policy, commercial and passenger vehicles will be covered and while junking, a certificate will be issued.
Reportedly, there are more than 40 lakh Pre BS-II four-wheeler vehicles in both commercial and passenger segment in India.
This is a plan under modernisation of fleet as Pre-BS II vehicles are almost 10 times more polluting than BS V vehicles.
Meanwhile,
READ MORE: Maruti Suzuki and Mercedes are hiking car prices, thanks to green tax
However, smart hybrid models are exempted from the tax net.
Honda Cars India also plans to raise prices in a range of Rs 4,000 to Rs 80,000.
The infrastructure cess of 1-4 per cent proposed in the Budget will make cars pricier by Rs 2,000-80,000 for the mainstream models and up to Rs 4-5 lakh for luxury vehicles.
Hyundai Motor is also raising prices from Rs 3000 on small car Eon to Rs 80000 on SUV Santa Fe.
The government is going to impose 2.5 percent cess on diesel vehicles of length not exceeding 4 metre and engine capacity not exceeding 1,500 cc, while a cess of 4 per cent was imposed on higher engine capacity SUVs and bigger sedans.
(Image: Indiatimes)