Delhi Government Proposes Tax Concession for Old Vehicle Scrapping, Seeks Lt Governor’s Approval

The Delhi government has proposed a tax concession for the scrapping of old vehicles, pending approval from Lt Governor VK Saxena. Under the plan, a reduction in the Motor Vehicles Tax will be granted for the registration of new transport and non-transport vehicles. This concession will be available to individuals who provide a certificate of deposit for their old vehicle, which must be surrendered at a Registered Vehicles Scrapping Facility (RVSF).

Delhi Transport Minister Kailash Gahlot said the 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," he added.

For non-transport vehicles, the proposed tax concession includes a 20 percent reduction in the Motor Vehicles Tax for new petrol, CNG, or LPG vehicles, and a 15 percent reduction for new diesel vehicles, as stated. For transport vehicles, the concession provides a 15 percent reduction for new petrol, CNG, or LPG vehicles, and a 10 percent reduction for new diesel vehicles. However, the total tax concession in both categories is capped at 50 percent of the vehicle's scrap value. The validity of the Certificate of Deposit is three years and it can be electronically traded, the statement added.