Transport Ministry Wants 40 Per Cent Discount For People Exchanging Old Cars For New

The Ministry of Road Transport and Highways (MoRTH) has written to the Finance Ministry to give 40 per cent discount to people who want to replace their 10-year old car with a new one.

This could mean an upfront discount between Rs.45,000 and Rs.70,000 depending on the make of the car.

The purpose behind this discount is to persuade people to give of their ageing vehicles to combat pollution.

Nitin Gadkari, MoRTH Minister has already offered to give an additional benefit of up to Rs.30,000 on the sale of small cars and up to Rs.1,00,000 on the sale of commercial vehicle.

If the Finance Ministry’s approves Gadkari’s proposal, then a person surrendering his 10-year-old car could benefit up to Rs.1 to Rs.1.5 lakh on the purchase of a new vehicle.




Gadkari explained in a media interaction after the first national Sagarmala apex committee meeting on Monday that an individual seller will get a certificate which one could use to get a flat discount when buying a new vehicle.

Value Added Tax (VAT), Service Tax, Road Tax, and Insurance, etc form a major part of the cost of a new car. The taxes range from 25 per cent to 47 per cent of the car’s cpst depending on the size of the car.

Gadkari said the move follows National Green Tribunal (NGT) order banning plying of diesel vehicles which are over 10-year-old in Delhi-NCR.

He announced that the government plans to build eight scrap recycle centres near ports to recycle used vehicles and boost automobile exports which is Rs.2.5 lakh crore at present.



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