In a step towards controlling air pollution by phasing out old vehicles, the Delhi government has decided to give a rebate on road tax to those who purchase new vehicles after scrapping old ones. The government has given an in-principle nod and forwarded the proposal to the Lieutenant Governor for final approval, said officials.
According to officials, the policy is aimed at promoting scrappage and replacing old polluting vehicles with new ones with upgraded fuel standards.
The government has decided to offer a maximum concession of 25% on road tax for non-transport vehicles, vehicles meant for personal use, and 15% for transport vehicles (public service vehicles) on production of the certificate of scrapping. The certificate is issued at the government’s registered scrapping facilities when a person scraps their old vehicle, said officials. For autos and private vehicles, road tax is paid once at the time of purchase, and for other vehicles, it is paid more than once.
In Delhi, diesel vehicles older than 10 years and petrol vehicles older than 15 years are banned from plying. If found on the roads, they are to be towed away and scrapped by the enforcement team of the transport department. The government has deregistered around 10 lakh diesel vehicles so far. As per officials, for non-transport vehicles, the concession will range from 8% to 25%, based on the cost of the new vehicle and fuel type.
Transport Minister Kailash Gahlot said, “We have to find every 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.”
“The concession in road tax granted under the policy will be allowed only for the same category of vehicles, that is, the category of vehicles for which the scrappage certificate will be produced to the registration authority. The concession will be available for up to eight years for transport vehicles, fifteen years for non-transport vehicles but there will be no concession after these periods,” said the officials.