New Delhi; The government is mulling a proposal to provide more tax-related concessions on vehicles that are purchased after scrapping old vehicles under the recently launched National Automobile Scrappage Policy, Union Minister Nitin Gadkari said on Tuesday.

While inaugurating Maruti Suzuki Toyotsu India's first government-approved scrapping and recycling facility for end-of-life vehicles (ELVs), Gadkari also said the scrappage policy is going to reduce pollution. "The GST revenue of both the Centre and states will rise due to the scrappage policy... I will discuss with the finance ministry on how to provide more (taxrelated) concessions under the new vehicle scrappage policy," he said. Under the new policy, the Centre had said the states and Union Territories (UTs) will provide up to 25% tax rebate on road tax for vehicles that are purchased after scrapping old vehicles.

Gadkari  also said he is also requesting the GST Council to explore what more incentives can be provided under the National Automobile Scrappage Policy. "The final decision (on providing more incentives under the National Automobile Scrappage Policy) will be taken by the finance ministry and the GST Council," he said. The minister added that the scrappage policy will benefit all stakeholders as it will boost manufacturing, create jobs and help both the Centre as well as state governments in earning up to Rs 40,000 crore each in GST.

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