Old commercial vehicles to be banned from use
Posted on: 26/Mar/2018 1:57:32 PM
The central government Minister for Transport and Roadways, Nitin Gadkari, informed that a proposal has been submitted to ban the use of the commercial vehicles which are more than 20 years’ old. This has been submitted for approval by the cabinet of ministers.
The high-level cabinet ministry has approved the proposal on a policy-basis to ban the use of old commercial vehicles which are more than 20 years’ old.
Minister Gadkari informed that the old commercial vehicles in operation constitute about 65% of the vehicles currently in use across the country. There has been a long-awaited expectation to ban the use of commercial vehicles more than 20 years’ old. A policy-level approval has been granted by the cabinet ministry.
This will be submitted to the cabinet within the next month for a full-fledged approval from the cabinet of ministers.
Once this is implemented, the government will earn an additional revenue of Rs. 10000 Crores.
Once the new vehicle policy is approved, the GST Council will take a decision for any concessions to be offered to those who intend to replace the old vehicles with new ones jointly in consultation with the central and state governments.
It may be expected that a price concession of 15-20% may be offered for those who intend to replace the banned old commercial vehicle with new ones. This will lead to increase in the manufacture of new vehicles by 22%.
The market of the commercial vehicles, which is presently worth Rs. 4.5 Lakh Crores will shoot up to be worth Rs. 20 Crores.
