Delhi Proposes Tax Breaks for Eco-Friendly Vehicle Registrations with Scrapping Program

The Delhi Government plans to offer Motor Vehicles Tax concessions for new vehicle registrations provided an old vehicle is scrapped at a Registered Vehicles Scrapping Facility. This initiative aims to reduce pollution and encourage the use of cleaner vehicles.

The Delhi Government is considering a significant tax concession for those registering new transport and non-transport vehicles, conditioned on the submission of a certificate of deposit for an old vehicle scrapped at a Registered Vehicles Scrapping Facility (RVSF). The proposal has now been forwarded to the Lieutenant Governor for approval, according to the Office of the Transport Minister, Government of NCT of Delhi.

Transport Minister Kailash Gahlot stated, "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 environmentally friendly options." For non-transport vehicles, the tax concession involves a 20% reduction in the Motor Vehicles Tax on new petrol, CNG, or LPG vehicles, and a 15% reduction for new diesel vehicles. For transport vehicles, the concession includes a 15% reduction in the tax for new petrol, CNG, or LPG vehicles, and a 10% cut for new diesel vehicles. However, the total tax concession will not exceed 50% of the vehicle's scrap value in either case, the statement elaborated.

The statement also noted that the validity of the Certificate of Deposit is three years and can be electronically traded.