Delhi Government Offers 20% Registration Tax Discount for Vehicle Scrappage!

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A new programme to replace old cars in the Delhi has been launched by the Delhi government through giving robust tax exemptions. Further the proposal on this plan has been presented before Lieutenant Governor VK Saxena for consideration. Anyone owning a non-transport vehicle can get a discount of 20% in the Motor Vehicle Tax imposed on the registration of new Petrol, CNG or LPG vehicles under this scheme if he produces a Certificate of Deposit to scrap their old vehicle at a Registered Vehicle Scrapping Facility (RVSF).

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The tax credit reduction for new diesel cars will be fixed at 15 percent for vehicles that are manufactured and imported into the country. Vehicle owners will be given a discount on the Motor Vehicle Tax of 15% on new petrol, CNG or LPG transport vehicles or 10% on new diesel transport vehicles; however the concessions will be capped at 50% of the scrap value.

The Certificate of Deposit also is another important document that replaces the scrapped vehicle, will be valid for three years and will be in a digital form to allow convenience to vehicle owners. This comes after following standard procedures that seek to reduce pollution levels within the capital city.

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In the year 2018, Supreme Court passed a new order that banned the old vehicles which run on diesel and petrol and a violation of the same made the vehicle liable to impoundment in Delhi if the vehicles have crossed 10 years of usage for diesel and 15 years for petrol. Further, a recent order passed by National Green Tribunal in the year 2014 does not permit the decking of old vehicles more than fifteen years of age in public areas. In this respect, the Delhi government has already deregistered 5.5 million vehicles which fall under the age limit rejected by the used car dealers.

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Delhi Transport Minister Kailash Gahlot said that it is aimed at encouraging people to scrap old generation and polluting vehicles so as to provide preferably new generation vehicles. “With the help of tax exemptions, our aim is to facilitate the change to much greener options for the owners of vehicles,” Gahlot said according to PTI. This initiative should go hand in hand with the constant attempts to make the air in Delhi cleaner so that it can be healthier for the people in the city.

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