NEW DELHI: The Delhi government on Wednesday announced a special scheme, under which residents can claim up to 20 per cent tax rebate on purchase of new vehicles by scrapping their old ones.
The scheme will not only bring the much-needed relief to consumers amidst inflation concerns, but also reduce the load of old polluting vehicles from the city roads, by promoting the use of less-polluting vehicles built according to modern standards.
Chief Minister Atishi has approved the new tax incentive scheme and will be notified soon, officials said.
In order to avail the benefits under the scheme, the vehicle owner has to obtain a Certificate of Deposit while scrapping his or her old vehicle at a registered scrapping facility. This certificate can be submitted during the registration of new commercial and non-commercial vehicles within three years from the date of issue to avail up to 20 per cent discount on the Motor Vehicle Tax.
The Delhi government will offer 20 per cent tax incentive on the registration of new non-transport petrol, CNG and LPG vehicles and a 15 per cent discount for diesel vehicles. Similarly, 15 per cent tax rebate will be provided on purchase of commercial petrol, CNG and LPG vehicles and 10 per cent discount for diesel vehicles.
The government had, on July 26, announced that it is planning to provide concession in the Motor Vehicles Tax for the registration of new transport and non-transport vehicles, provided a certificate of deposit is submitted for an old vehicle handed over for scrapping at a Registered Vehicles Scrapping Facility.
A proposal in this regard was also sent to the Lieutenant-Governor for approval.
“This policy aims to encourage the scrapping of old, polluting vehicles and promote the use of newer, cleaner vehicles. By offering tax concessions, we hope to make it easier for vehicle owners to transition to more environmentally friendly options,” Delhi transport minister Kailash Gahlot had said.
Last month, Union minister Nitin Gadkari had said that automobile industry can witness an 18 per cent rise in sales if vehicle scrapping policy is adopted. He added that vehicle sales in the US and Europe have seen 15 per cent increase in sales after adopting vehicle scrapping policy.
Union Road Transport and Highways Secretary Anurag Jain had last month said the ministry is studying whether it can link the vehicle scrapping mandate to the pollution levels of vehicles instead of their age.
Bid to curb vehicular pollution
Residents who scrap their old vehicles will be eligible for availing discount on Motor Vehicle Tax while purchasing new vehicles within three years
Scheme gets Delhi Chief Minister Atishi’s nod; notification to be issued soon
Discount scheme aimed at providing relief to residents amidst inflation and reducing old polluting vehicles from roads
20% tax discount on purchase of non-commercial CNG and petrol vehicles; 15% tax discount on diesel vehicles to be offered under the scheme
15% tax incentive will be offered on purchase of commercial CNG and petrol vehicles; 10% tax discount will be given for diesel vehicles