Delhi govt gives in-principle approval to tax concession for new vehicles

Delhiites will soon get road tax concession if they buy new vehicles after scrapping old ones, with the Delhi government on Friday giving in-principle approval to the measure.

The concession will range from eight per cent to 25 per cent of the tax amount. The government has decided to offer a maximum concession of 25 per cent in case of non-transport vehicles and 15 per cent in case of transport vehicles upon production of certificate of scrapping (certification of deposit) by new vehicle buyers.

The policy will come into effect after final approval by the Delhi Lieutenant Governor and will promote scrapping and replacement of old polluting vehicles with new vehicles of upgraded fuel standards.

 

The certificate of deposit' will be issued at the registered scrapping facilities of the government upon scrapping of old vehicles.

For non-transport vehicles, the concession will range from eight per cent to 25 per cent based on cost of new vehicle and fuel type.

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. The motor vehicle tax concession to BH series vehicles will be provided as per the slabs with respect to road tax provided at the time of registration of new vehicles.

The motor vehicle tax concession on purchase of new transport 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.

The concession in road tax granted under the policy will be allowed only for the same category of vehicles -- the category of vehicles for which the certificate of deposit will be produced to the registration authority. The concession will be available up to eight years in case of transport vehicles and up to 15 years, in case of non-transport vehicles and there will be no concession available after these periods.

With the introduction of the policy, the Delhi government aims to reduce congestion on Delhi's roads and bring down the number of polluting aged vehicles.

The policy will pave the way for scrapping of old vehicles and introduction of new vehicles with upgraded pollution norms.

It will also help with establishment of a circular economy in the transportation sector, reducing the vehicle scrappage and those old vehicles which are lying unutilized, officials said.

"We 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 Transport Minister Kailash Gahlot.