- May 27, 2008
Union Finance Minister Nirmala Sitharaman on Friday announced a number of healing measures for the issues plaguing the automotive industry, which included enhancing liquidity situation and clarity on BS IV registration.
Among the top of the announcements, the FM informed that the proposed hike in registration of vehicle has been postponed till June 2020. Another measure announced was to release the pending GST within 30 days.
It will serve as major booster to the automobile dealers who have been suffering the most.
As per Finance Minister announcement, from today to March 31st 2020, any type of vehicle purchased is eligible for 15 percent depreciation over and above the existing 15 percent and total is 30 percent.
Brushing aside speculation that usage of conventional engines would be discontinued, she further said that both electric vehicles and internal combustion engine vehicles will continue to be registered.
"The govt focus will be in setting up infrastructure for the auto industry & ancillary components including batteries for export. But both EV's and ICE will continue to be registered," Sitharaman added.
"Since we need to create a necessary infrastructure for dealing with scrapped vehicles, we are holding on but we shall hopefully come with a scrappage policy sooner, so that road unworthy vehicles can all be sent to be completely scrapped and the money of scrapped vehicles to be obtained in form of coupons with which the new vehicles will be bought."
Read the full article at the link below:
FM rolls out package to boost auto sector, liquidity situation; scrappage policy to come soon - ET Auto
In another major boost to the sector, the Finance Minister has also announced “a vehicle scrappage policy will be coming soon”.