The AAP-led Delhi Government on Friday gave in-principle approval for offering rebate on Road Tax for vehicles purchased after scrapping of old automobiles. According to a statement issued by the Delhi Government’s Transport Department, a maximum concession of 25 per cent in case of non-transport vehicles and 15 per cent in the case of transport vehicles would be provided to new vehicle buyers upon production of ‘Certification of Deposit’ issued during the scrapping of old vehicles.
The policy will come into effect after its final approval by Lieutenant-Governor (L-G) VK Saxena. According to the Delhi Government, the policy will pave the way for scrapping of old vehicles and introduction of new vehicles with upgraded pollution norms. It will also help in the establishment of a circular economy in the transportation sector, reducing the vehicle scrappage and those old vehicles which are lying unutilized.
Speaking at the occasion, Delhi’s Transport Minister, Kailash Gahlot said that they have to find every possible way to promote a circular economy and establish mobility infrastructure which is environmentally sustainable.
“A lot of cities in the world are struggling with waste disposal and looking for efficient solutions. I am confident that the policy will encourage vehicle owners in Delhi to replace and scrap their old vehicles with new vehicles of higher emission standards. I would rather urge them to buy an EV than any other type of vehicle to help our city become clean,” said Gahlot. Officials said, “The ‘certificate of deposit’ will be issued at the registered scrapping facilities of the Government upon scrapping of old vehicles.” Giving details, the officials said that the concession to new buyers will be given in three vehicle categories.
“For non-transport vehicles, the concession will range from 8 to 25 per cent based on the cost of the new vehicle and fuel type, while in second category, the new vehicles registered under BH (Bharat) series are liable to deposit the motor vehicle tax for two years as per the Ministry of Road Transport and Highway guidelines,” said the officials adding that the motor vehicle tax concession to BH series vehicles will be provided “Thirdly, the motor vehicle tax concession on purchase of new transport (commercial) vehicles on production of certificate of deposit will be 15 per cent of total motor vehicle tax paid at the time of registration of new vehicles,” said the official.
“The concession will be available up to eight years in case of transport vehicles and up to fifteen years, in case of non-transport vehicles and there will be no concession available after these periods,” said the official.