Vehicle scrapping policy — Gadkari on road tax rebate: In concurrent list, Centre can decide

THE NOTIFICATION to mandate a range of rebate in road tax levied by states on new cars bought after scrapping old cars will be issued in a few days.

The Centre has held discussions with states after taking the legal opinion that in this matter the central government can, in fact, dictate the range of the tax, as per the principle of taxation on matters in the concurrent list.

Some states, especially ruled by the Opposition, had raised the query on the draft notification issued earlier, saying the Centre under the federal structure cannot direct how much tax a state should charge.