Delhi Govt to Provide Tax Concession for Scrapping Old Vehicles, Proposal Sent to LG

The Delhi government is planning to provide a tax concession for scrapping old vehicles and has sent a proposal to Lt Governor VK Saxena for approval.

The government has decided to give a concession in the Motor Vehicles Tax for the registration of new transport and non-transport vehicles, provided a certificate of deposit is submitted for an old vehicle handed over for scrapping 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 concession includes a 20 per cent reduction in the Motor Vehicles Tax payable on the registration of new petrol, CNG, or LPG vehicles, and a 15 per cent reduction for new diesel vehicles, a statement said.

For transport vehicles, the concession includes a 15 per cent reduction in the Motor Vehicles Tax payable on the registration of new petrol, CNG, or LPG vehicles, and a 10 per cent reduction for new diesel vehicles. However, the total Motor Vehicles Tax concessions can not exceed 50 per cent of the scrap value in both cases.

The validity of the Certificate of Deposit is three years and it can be electronically traded, the statement added.

In 2018, the Supreme Court banned diesel and petrol vehicles older than 10 and 15 years, respectively, in Delhi. It had said that the vehicles plying in violation of the order would be impounded.

A 2014 order of the National Green Tribunal bars vehicles older than 15 years to be parked in public places. The Delhi government has deregistered 5.5 million overage vehicles.