The Delhi government is contemplating offering concessions on the Motor Vehicles Tax for new vehicle registrations, contingent upon the submission of a certificate confirming the scrapping of an old vehicle at a registered vehicle scrapping facility ( RVSF ). This proposal has been forwarded to the Lieutenant Governor (L-G) for approval.
Transport Minister Kailash Gahlot, addressing the press on Friday, stated that This policy aims to encourage the scrapping of old, polluting vehicles and promote the use of newer, cleaner vehicles. By offering tax concessions, we hope to make it easier for vehicle owners to transition to more environment-friendly options.
Details of the Proposed Concession:
Non-Transport Vehicles: A 20% reduction in the Motor Vehicles Tax for new petrol, CNG, or LPG vehicles, and a 15% reduction for new diesel vehicles.
Transport Vehicles: A 15% reduction in the Motor Vehicles Tax for new petrol, CNG, or LPG vehicles, and a 10% reduction for new diesel vehicles.
The total Motor Vehicles Tax concessions will not exceed 50% of the scrap value in either case. Additionally, the certificate of deposit for the scrapped vehicle will be valid for three years.
Background on Vehicle Regulations
In 2018, the Supreme Court banned diesel and petrol vehicles older than 10 and 15 years, respectively, in Delhi, stating that vehicles violating this order would be impounded. Furthermore, a 2014 order by the National Green Tribunal prohibited vehicles older than 15 years from being parked in public places.
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