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Car Scrapping Scheme Is Ready To Launch

scrap yard
scrap yard

According to Vladimir Tosovsky, the Trade Minister of the Czech Republic, car scrapping scheme is ready to launch at any time in the nearest future. The exact starting date at the moment is not fixed, but most likely this system is to begin functioning since the next year.

Under this scheme a buyer purchasing a petrol or diesel powered car priced up to CZK 500,000 is entitled to receive CZK 30,000 bonus. Buyers of environmentally friendly cars (hybrids and the like) will get even more – a CZK 60,000 bonus each. But in exchange this person must scrap his/her vehicle if it is older than 9 years. Applications should be submitted to the State Environmental Fund.

The car scrapping scheme has caused some controversy among experts. The main arguments against such system are following: firstly, it may hinder necessary changes in automotive industry, and secondly, such preferences to certain industry may cause serious dissatisfaction among other manufacturers.

The Median agency recently published the results of the poll concerning car scrapping subsidy. Over 28 percent of respondents are clearly expressed that they are in favor of this scheme, about 32 percent of participants support this system in general but have some doubts. So in general the attitude is rather friendly, but certain amount of people are not ready to apply for a subsidy in reality.

Photo: by Snowmanradio (wikimedia.org)

Date: 16/06/2009

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