The Delhi Government is considering providing 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 on Friday said that the proposal in this regard has been sent to Lieutenant Governor Vinai Kumar Saxena for his approval. He announced that the Delhi government will provide such concessions in a bid to make it easier for vehicle owners to transition to more environmentally friendly options.

“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,” the AAP leader stated. 

Further, for non-transport vehicles, the concession includes a 20 per cent reduction in the tax payable on the registration of new petrol, CNG, or LPG vehicles. It also includes a 15 per cent reduction for new diesel vehicles.

A statement stated that for transport vehicles, the concession includes a 15 per cent reduction in the 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 tax concessions shall not exceed 50 per cent of the scrap value in both cases. Additionally, the validity of the Certificate of Deposit is three years which can be electronically traded.

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.