Delhi Government Offers Tax Concession for Scrapping Old Vehicles

The government has announced a new policy to incentivize the scrapping of old vehicles and promote the use of newer, cleaner vehicles. This policy includes a concession in the Motor Vehicles Tax for the registration of new transport and non-transport vehicles.

To avail of this concession, vehicle owners must submit a certificate of deposit for an old vehicle that has been handed over for scrapping at a Registered Vehicles Scrapping Facility (RVSF). Delhi Transport Minister Kailash Gahlot emphasized that the tax concessions aim to make it easier for vehicle owners to transition to environment-friendly options.

For non-transport vehicles, the concession entails a 20% reduction in the Motor Vehicles Tax for the registration of new petrol, CNG, or LPG vehicles, and a 15% reduction for new diesel vehicles. In the case of transport vehicles, the concession amounts to a 15% reduction for new petrol, CNG, or LPG vehicles, and a 10% reduction for new diesel vehicles.

However, the total Motor Vehicles Tax concessions cannot exceed 50% of the scrap value in both cases. The validity of the Certificate of Deposit is three years, and it can be electronically traded.

It’s worth noting that in 2018, the Supreme Court banned diesel and petrol vehicles older than 10 and 15 years, respectively, in Delhi, with violators facing vehicle impoundment. Furthermore, a 2014 order from the National Green Tribunal prohibits vehicles older than 15 years from being parked in public places.

As a result, the Delhi government has deregistered 5.5 million overage vehicles in an effort to mitigate pollution and promote environmental sustainability.