Union road transport and highways minister Nitin Gadkari on Tuesday said the proposed concession in road tax under the vehicle scrappage policy will be a rule and not a mere advisory for states. Talking to media persons, the minister said the Centre is authorised to decide on this concession.

       “We are authorised under the concurrent list to decide on the principle of taxation,” Gadkari told reporters. The policy proposes a steep cut of 25 per cent in road tax for personal vehicles and up to 15 principal of taxation for commercial vehicles.

       According to the policy, any vehicle undergoing scrapping will receive a certificate to be availed for further benefits on new vehicles. Prime Minister Narendra Modi, last week, unveiled the Voluntary Vehicle-Fleet Modernisation Program (VVMP), at the Investors’ Summit in Gujarat.

       The policy is expected to attract investments worth Rs 10,000 crore to set up 450-500 automated testing stations (ATS) and 60-70 registered vehicle scrapping facilities (RVSF) across the country.