The Delhi government has introduced a new initiative aimed at promoting the scrapping of old vehicles by offering substantial tax discounts. This proposal, which is currently awaiting approval from Lieutenant Governor VK Saxena, is designed to encourage vehicle owners to switch to newer, more environmentally friendly vehicles.
Key Details of the Scheme:
For Non-Transport Vehicles:
Owners will receive a 20% reduction in the Motor Vehicles Tax when registering new petrol, CNG, or LPG vehicles, provided they present a Certificate of Deposit from a Registered Vehicles Scrapping Facility (RVSF) confirming that their old vehicle has been scrapped.
For new diesel vehicles, the tax concession will be 15%.
2. For Transport Vehicles:
The concession rates are slightly lower, with a 15% reduction for new petrol, CNG, or LPG vehicles and a 10% reduction for new diesel vehicles.
The tax concession cannot exceed 50% of the scrap value of the vehicle.
The Certificate of Deposit will be valid for three years and can be traded electronically, offering more flexibility for vehicle owners.
Background and Rationale:
This initiative is part of a broader strategy to address pollution issues in the capital. In 2018, the Supreme Court of India prohibited diesel and petrol vehicles older than 10 and 15 years, respectively, from operating in Delhi, with penalties including vehicle impoundment for violators. Additionally, a 2014 order from the National Green Tribunal banned vehicles older than 15 years from being parked in public areas. As a result, Delhi has already deregistered approximately 5.5 million vehicles that exceed the age limit.
Delhi Transport Minister Kailash Gahlot emphasized the purpose of the proposed policy, stating, “By offering tax concessions, we hope to make it easier for vehicle owners to transition to more environment-friendly options,” according to a report from PTI. The goal of this scheme is to incentivize the scrapping of older, more polluting vehicles and promote the adoption of newer, cleaner alternatives.
The initiative reflects the government’s ongoing efforts to mitigate environmental damage and improve air quality in the capital by encouraging the replacement of outdated and polluting vehicles with more sustainable options.
