The Delhi government on Friday sent a proposal to provide tax concessions to individuals who opt to get their old vehicles scrapped to the Lieutenant-Governor for approval.
According to the proposed policy, the government will give concessions to individuals under the Motor Vehicles Tax for registering a new private or commercial vehicle after they submit a deposit certificate certifying that they have handed over their old car to be scrapped.
The proposal is an effort by the Transport Department to encourage the scrapping of old, polluting vehicles and promote the use of newer, cleaner vehicles, said Transport Minister Kailash Gahlot.
“By offering tax concessions, we hope to make it easier for vehicle owners to transition to more environment-friendly options,” he added.
According to the new proposal, private vehicles will get a concession that includes a 20% reduction in the Motor Vehicles Tax payable on the registration of new petrol, CNG, or LPG-fuelled vehicles. New diesel vehicles will get a 15% concession.
For commercial vehicles, individuals will be able to claim a concession of 15% in the Motor Vehicles Tax payable on the registration of new petrol, CNG, or LPG vehicles and a 10% reduction for new diesel vehicles. However, the total Motor Vehicles Tax concessions can not exceed 50% of the scrap value in both cases, said Mr. Gahlot.
The proposal further states that the validity of the deposit certificate will be three years and it can be traded electronically.
The new proposal is one of the many attempts of the Delhi government to control the plying of diesel and petrol vehicles older than 10 and 15 years respectively.
Such attempts by the government have been after the 2018 judgement by the Supreme Court banning diesel and petrol vehicles older than 10 and 15 years respectively in Delhi following a 2014 National Green Tribunal order barring the plying and parking of such vehicles in public spaces.
