The Governemnt has issued a notification allowing higher depreciation on commercial vehicles as a measure aimed to boost demand and reverse the recessionary trend in this segment. Accordingly, commercial vehicles acquired on or after October 1, 1998 but before April 1, 1999 will be allowed deprectiation at the rate of 40 per cent irrespective of the number of days for which the asset has been used.New commercial vehicles acquired on or after October 1, 1998 but before April 1, 1999 in replacement of condemned vehicles of over 15 years of age, will be allowed depreciation at the rate of 60 per cent, irrespective of the number of days for which the asset has been used.