The AAP Government said on Friday that it is considering a 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 (RVSF).
The government said a proposal in this regard has been sent to Delhi Lieutenant Governor VK Saxena for his approval.
Delhi Transport Minister Kailash Gahlot said this policy aims to encourage the scrapping of old, polluting vehicles and promote the use of newer and cleaner vehicles. “By offering tax concessions, we hope to make it easier for vehicle owners to transition to more environmentally friendly options,” he added.
For non-transport vehicles, the concession includes a 20 per cent reduction in the motor vehicles tax payable on the registration of new petrol, CNG, or LPG vehicles, and a 15 per cent reduction for new diesel vehicles, an official statement said.
For transport vehicles, the concession includes a 15 per cent reduction in the motor vehicles tax payable on the registration of new petrol, CNG, or LPG vehicles, and a 10 per cent reduction for new diesel vehicles. However, the total motor vehicles tax concessions shall not exceed 50 per cent of the scrap value in both cases, it said.
The validity of the certificate of deposit is for three years and it can be electronically traded, it added.