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    ‘Phasing out old vehicles could fetch Rs 40,000 cr in GST’: Nitin Gadkari

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    By Martin Shwenk Leade

    Copyright indiatimes

    'Phasing out old vehicles could fetch Rs 40,000 cr in GST': Nitin Gadkari

    PTINitin Gadkari

    New Delhi: Road transport and highways minister Nitin Gadkari on Friday said the Centre and states could earn up to ₹40,000 crore in goods and services tax (GST) if all the 9.7 million unfit and polluting vehicles in the country are scrapped.A total of 300,000 such vehicles have been scrapped till August, including 141,000 government vehicles, said Gadkari, addressing the annual session of the Automobile Component Manufacturers Association of India (ACMA).”According to our estimate, there are 9.7 million (unfit and polluting) vehicles, which we need to scrap…7 million jobs will be created and ₹40,000 crore benefits will go to the Centre and states in GST if all unfit and polluting vehicles will be scrapped,” he said.According to Gadkari, 16,830 vehicles are being scrapped on average every month, and the private sector has invested ₹2,700 crore in setting up scrapping centres.The government has implemented the Voluntary Vehicle Fleet Modernisation Programme (V-VMP) or vehicle scrapping policy for creating an ecosystem to phase out unfit and polluting vehicles in an eco-friendly manner.Live EventsUnder the Motor Vehicles Rules, fitness tests for commercial vehicles are mandatory every two years up to eight years, and annually thereafter. In case of private vehicles, this test is required at the time of registration renewal, which is after 15 years, and subsequently, every five years. For vehicles registered in the name of governments, the usage expires after 15 years.Gadkari also urged the automobile industry to consider offering a minimum discount of 5% to customers who submit a scrappage certificate while buying a new vehicle. “It is not charity, because it is going to increase the demand,” he said.The minister also noted that while the auto industry has gained a lot from the GST rationalisation, the successful implementation of vehicle scrapping policy will reduce the cost of automobile components by 25%.Responding to a question on the government’s proposal of 27% ethanol blending in petrol (E27), Gadkari said countries like Brazil have been using 27% ethanol blending in petrol for the last 49 years.”We are not going to compromise with the quality. After completing all tests, the Automobile Research Association of India (ARAI) will send the proposal to the petroleum ministry. The ministry will recommend to the Cabinet and then we will take the decision on E27, so there is no confusion about it,” he said.Prime Minister Narendra Modi had launched the higher 20% ethanol-blended petrol in 2023.According to Gadkari, the E20 blended fuel has undergone various tests before being accepted as a policy by the ministry, emphasising that the fuel does not impact vehicle mileage.”We experiment first for years and only then accept the policy. There is no problem in quality. Companies like Toyota, Hyundai, Tata, Mahindra, Bajaj, Honda have all issued clarifications,” he said, adding that they had received no complaints so far.Add as a Reliable and Trusted News Source Add Now!
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    Read More News onVehicle Scrapping PolicyGST Revenue from Vehicle ScrappingNitin GadkariEthanol Blending in PetrolScrapped Vehicles Statistics

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    (You can now subscribe to our Economic Times WhatsApp channel)Read More News onVehicle Scrapping PolicyGST Revenue from Vehicle ScrappingNitin GadkariEthanol Blending in PetrolScrapped Vehicles Statistics(Catch all the Business News, Breaking News, Budget 2025 Events and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online….moreless

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