Budget 2020: Toyota seeks scrappage policy, income tax relief on vehicles
PTI, Jan 28, 2020, 4:48 PM IST
New Delhi: Toyota Kirloskar Motor (TKM) on Monday urged the government to come out with a scrappage policy for old vehicles ahead of the Budget, while also seeking to extend income tax benefits available for electric cars to other vehicles as well.
“We would like the Budget to spur demand without putting any additional burden on the government exchequer; one way to achieve this is by realising the scrappage policy for all old vehicles, the draft policy of which has been shared by the government,” TKM Senior Vice-President (Sales & Services) Naveen Soni said in a statement.
The auto industry is willing to share its portion towards realising such scrappage policy, which will eventually have a more sustainable impact on the environment, he added.
Additionally, another thrust area would be to extend the income tax benefits available for electric cars to other vehicles as well, or to extend the depreciation benefit currently available only to companies and professionals to personal customers also, Soni said.
“This kind of stimulus will not have a significant impact on the government revenues in the immediate future while it can effectively improve consumer sentiment and help pull forward demand during the difficult period of BS-VI transition that will see prices of most vehicles go up,” he added.
These purely temporary measures could help lead a phased improvement in the overall sentiments and revival of demand, Soni noted.
While presenting the Budget for 2019-20, the finance minister had proposed to provide additional income tax deduction of Rs 1.5 lakh on the interest paid on loans taken to purchase electric vehicles as part of efforts to accelerate the adoption of eco-friendly mobility solutions.
Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.
Top News
Related Articles More
RBI announces MPC schedule for FY25, first rates decision on April 5
Seven out of ten Indian shoppers say they would happily receive product deliveries without additional packaging
Renault Nissan to launch four new products, expand product portfolio
Sensex, Nifty rebound on heavy buying in Reliance Industries, HDFC Bank
IndiGo to fly more international routes, destinations; aims doubling size by 2030: CEO Pieter Elbers
MUST WATCH
Latest Additions
Priyanka Gandhi questions govt under Cong’s media campaign for LS polls
Delhi under constitutional crisis, Kejriwal should quit if he has scant regard for people: BJP
Fare of shared cabs on Pune, Nashik and Shirdi routes from Mumbai hiked
Cong’s D K Suresh, only incumbent MP from Karnataka, files nomination from Bangalore Rural
Sena (UBT) firm on contesting from Sangli, nobody should do anything that will help BJP: Raut