Old vehicle scrapping scheme: Who gets what
Under the new scheme, owners of non-transport vehicles will receive a 20% reduction in the Motor Vehicles Tax for the registration of new petrol, CNG, or LPG vehicles, provided they submit a Certificate of Deposit for scrapping their old vehicle at a Registered Vehicles Scrapping Facility (RVSF).For new diesel vehicles, the tax concession will be 15%.
For transport vehicles, the concession rates are slightly lower. Owners will benefit from a 15% reduction in Motor Vehicles Tax for new petrol, CNG, or LPG vehicles, and a 10% reduction for new diesel vehicles. However, it’s important to note that these concessions cannot exceed 50% of the scrap value in either category.
Tata Altroz Racer Review: Tata’s 2nd attempt at hot hatchback | TOI Auto
The Certificate of Deposit, which serves as proof of the scrapped vehicle, will be valid for three years and can be traded electronically, adding flexibility for vehicle owners.
This initiative comes in the wake of stringent measures taken to curb pollution in the capital. In 2018, the Supreme Court banned diesel and petrol vehicles older than 10 and 15 years respectively, from plying in Delhi, with violators facing vehicle impoundment. Additionally, a 2014 order from the National Green Tribunal prohibits vehicles older than 15 years from being parked in public places. As part of these efforts, the Delhi government has already deregistered 5.5 million vehicles that exceed the age limit.
According to Delhi Transport Minister Kailash Gahlot, the proposed policy is designed to incentivize the scrapping of older, more polluting vehicles, thereby promoting the use of newer and cleaner alternatives. “By offering tax concessions, we hope to make it easier for vehicle owners to transition to more environment-friendly options,” Gahlot said, as per a report from PTI.