A $3.2 billion scheme to encourage early replacement of pre-Euro and Euro I diesel commercial vehicles with new ones complying with prevailing Euro IV emission standards will be rolled out on April 1.

Owners who scrap their pre-Euro and Euro I diesel commercial vehicles and replace them with new commercial vehicles complying with the prevailing emission standard for registration of new diesel commercial vehicles - which is now Euro IV emission standards - will receive a one-off grant. Depending on vehicle types, the grant ranges from $10,000 to a maximum of $173,000 per vehicle.

The grant will be made available for 18 months for pre-Euro diesel commercial vehicles, except those over four tonnes of long-idling operational mode 1; and three years for Euro I diesel commercial vehicles and those pre-Euro vehicles over four tonnes of long-idling operational mode.

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