Get discount on registration of new vehicle, if you scrap overage one: Delhi govt notifies new scheme
The scheme, approved by the Lieutenant Governor, aims to promote the replacement of old vehicles with newer, more eco-friendly models.
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The vehicles have to be scrapped at a government-authorised Registered Vehicle Scrapping Facility. ArchiveThe Delhi government has notified a new tax rebate incentive scheme, under which owners will get discount on registration of a new vehicle after getting their old petrol and diesel vehicles, which have completed 15 years and 10 years in service, respectively, scrapped at a government-authorised Registered Vehicle Scrapping Facility (RVSF).
The scheme, approved by the Lieutenant Governor, aims to promote the replacement of old vehicles with newer, more eco-friendly models.
The notification says, “… the Lieutenant Governor of National Capital Territory of Delhi being of opinion that it is necessary or expedient in public interest…, hereby provides for concession in motor vehicles tax on registration of new transport and non-transport vehicles, against the certificate of deposit in favour of old vehicles handed over for scrapping at RVSF.”
A gazette notification in this regard was published on October 15. “We received the notification a few days ago… It has been implemented and people can avail the incentives under this scheme,” said a senior transport department official.
The scheme provides a 20% concession on motor vehicle tax payable for the registration of a new non-transport (for personal use) petrol, CNG, or LPG vehicles, and a 15% concession for the registration of new non-transport diesel vehicles.
For transport vehicles — carrying passengers and goods commercially — the scheme provides a 15% discount on registration of petrol, CNG, and LPG-fuelled vehicles and 10% on registration for diesel vehicles, when a certificate of deposit (COD) is submitted for old vehicles scrapped at a RVSF.
According to the notification, tax concessions cannot exceed 50% of the scrap value for both transport and non-transport vehicles.
“… COD will be a necessary and sufficient document for the owner to avail the Motor Vehicle Tax concession on the purchase of a new vehicle. The validity of the said certificate shall be three years from the date of its issuance and it shall be electronically tradable,” it added.
However, the scheme does not offer incentives on COD issued against government-owned or impounded vehicles handed over by an enforcement agency. Such COD will not be electronically tradable. “For this purpose, the scrap value shall be reckoned as mentioned in the COD,” read the notification.
While around 5.5 million old vehicles have already been de-registered in the Capital, the city still has around 1 lakh-1.5 lakh such vehicles.
With pollution levels rising in Delhi, the transport department had on October 11 launched a joint drive with other enforcement agencies like the MCD and the Traffic Police against such old vehicles.
Over 3,000 such vehicles plying illegally or parked in public places have been impounded and sent to RVSFs.
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