According to a media report, Tata and Ashok Leyland believe that an incentives-based scrappage poliy for commercial vehicles (CV) could help create demand.
CV sales have been on a decline following the transition to BS6 emission norms. The outbreak of the Covid-19 pandemic has further affected the industry.
Both CV makers are of the opinion that incentives in the form of rebate in GST, road tax or registration charges would help boost demand. It is said that customers would benefit from scrap value, tax savings and added discounts. A scrappage policy is also expected to benefit the environment.
According to Nitin Gadkari, union minister for road transport and highways, a scrappage policy is said to be in the final stages of getting Cabinet approval.
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