Question

Which of the following is true regarding Vehicle Scrapping Policy recently announced by the Centre?

• A. State governments have been advised to offer road tax rebate up to 25% for personal vehicles and manufacturers to provide 5% discount on purchase of a new vehicle against the scrapping certificate
• B. State governments have been advised to offer road tax rebate up to 50% for personal vehicles and manufacturers to provide 10% discount on purchase of a new vehicle against the scrapping certificate.
• C. State governments have been advised to offer road tax rebate up to 33% for personal vehicles and manufacturers to provide 7% discount on purchase of a new vehicle against the scrapping certificate.
• D. State governments have been advised to offer road tax rebate up to 40% for personal vehicles and manufacturers to provide 3% discount on purchase of a new vehicle against the scrapping certificate. [

Answer 1

The Correct Option is A

The Vehicle Scrapping Policy announced by the Indian government aims to phase out older vehicles, thereby reducing pollution, enhancing safety, and promoting fuel efficiency. Here's a detailed breakdown of the policy's key components related to incentives:

1. Road Tax Rebate: State governments have been advised to offer a road tax rebate of up to 25% for personal vehicles. This is to encourage vehicle owners to scrap old vehicles and purchase new ones, which are more efficient and environmentally friendly.
2. Discount from Manufacturers: Vehicle manufacturers are encouraged to provide a discount of 5% on the purchase of a new vehicle against the scrapping certificate. This financial incentive aims to further motivate consumers to opt for new, less polluting vehicles.

Let's evaluate the given options:

• Option 1:
  State governments have been advised to offer road tax rebate up to 25% for personal vehicles and manufacturers to provide 5% discount on purchase of a new vehicle against the scrapping certificate
  - This is the correct statement as per the announced policy.
• Option 2:
  State governments have been advised to offer road tax rebate up to 50% for personal vehicles and manufacturers to provide 10% discount on purchase of a new vehicle against the scrapping certificate.
  - This is incorrect. The proposed rebate and discount percentages exceed the actual figures.
• Option 3:
  State governments have been advised to offer road tax rebate up to 33% for personal vehicles and manufacturers to provide 7% discount on purchase of a new vehicle against the scrapping certificate.
  - This is incorrect for similar reasons; these percentages are not part of the current policy.
• Option 4:
  State governments have been advised to offer road tax rebate up to 40% for personal vehicles and manufacturers to provide 3% discount on purchase of a new vehicle against the scrapping certificate.
  - Again, this does not align with the official percentages established in the policy.

Hence, the correct option is the first one, as it accurately reflects the incentives outlined in the Vehicle Scrapping Policy.