NEW DELHI: 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 by new vehicle buyers.
The policy will come into effect after final approval by the 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 Delhi government aims to reduce congestion on the capital’s roads and bring down the number of polluting aged vehicles.