Want clarity on vehicle scrapping policy, says Maha trucker

The Union Budget announcementabout a voluntary scrapping policy for old and unfit vehiclesis a good one but there must be more clarity on its financialbenefits to owners in subsequent purchases, a trucker outfitfunctionary said in Aurangabad on Tuesday.

Fayyaz Khan of Aurangabad Goods Transport Association,which is part of All India Motor Transport Congress, thenationwide umbrella body of truckers, told PTI the governmentmust give some tax benefit when the person who opts for thepolicy purchases his next truck.

He said the trade is already facing losses due to risein tyre and fuel prices, with rates of diesel going up from Rs66.47 in March last year, just as the lockdown set in, to Rs82.52 as on Tuesday.

''We welcome the vehicle scrapping initiative. However,we want more clarity on financial benefits to those who optfor it. Currently, trucks less than 10 years old run oninter-state routes, those between 10 and 15 on state roads,and those above 15 on short fixed trips, mostly carrying farmproduce,'' he explained.

''We have to spend some 76 per cent of the amount weget from a truck trip. This was 62 per cent in January, 2020.

The other outflows are 12 per cent for wear and tear, and 12per cent for toll, salaries and other operational expenses,''he said.

Tyre prices have increased by 3 per cent due to supplyissues, which in turn has brought down profit margin fordealers from 4-5 per cent to almost nil, claimed tyre dealerAshish Chauhan.