Government may soon cap life of commercial vehicles at 20 years

Effective 2020, the Centre’s vehicle-scrapping policy may become compulsory for all commercial vehicles and their life will be capped at 20 years. There is also a plan to get the GST Council to consider a lower tax on new commercial vehicles bought against a scrapped one, from the current GST rate of 28 per cent to 12–18 per cent. Vehicle manufacturers may also offer a discount on purchases against scrapped vehicles. Once the Cabinet approves the scheme and till the deadline of 2020 kicks in, owners of vehicles older than 20 years can voluntarily scrap their commercial vehicles and receive a discount on the purchase of new ones. India has nearly 700,000 trucks, buses and taxis that were manufactured before 31 December 2000 and these contribute about 15–20 per cent of vehicular pollution (AT Kearney-CPCB-Union Road Ministry on emission norms). The Government expects 350,000 vehicles to be scrapped in the next two to three years. The steel ministry along with NITI Aayog has been directed to draft a policy to promote establishment of recycling and shredding centres. Source: HT, 17 March 2018