The Delhi government has introduced a proposal to encourage the scrapping of old vehicles. Under this proposal, owners scrapping their old vehicles will receive a 20% discount on motor vehicle tax when purchasing a new vehicle. However, this discount cannot exceed 50% of the value of the scrapped vehicle. The proposal has been sent to the Lieutenant Governor for approval.
Background and Objective
Delhi has over 5.4 million vehicles that have outlived their useful life. Transport Minister Kailash Gahlot stated that the objective of this initiative is to remove old, polluting vehicles from the roads and promote the use of cleaner, new vehicles. The government hopes that people will come forward to adopt environmentally friendly transportation options.
Incentives for New Vehicle Purchases 🚙🛢️
Once the proposal receives approval from the LG, the following benefits will be available:
- 20% discount on motor vehicle tax for new petrol, CNG, or LPG non-transport vehicles.
- 15% discount on motor vehicle tax for new diesel vehicles.
- 10% discount on new diesel transport vehicles.
Process and Validity
Vehicle owners must take their old vehicles to a licensed scrapper authorized by the government to avail the benefits. After scrapping the vehicle, they will receive a Certificate of Deposit. This certificate will be valid for three years, during which the owner can use it to avail discounts on the purchase of new vehicles.
Key Benefits
- 20% discount on motor vehicle tax for new petrol, CNG, and LPG non-transport vehicles.
- 15% discount on new petrol, CNG, and LPG transport vehicles.
- 10% discount on new diesel transport vehicles.
Important Information Table
| Benefit Type | Discount Percentage | Applicable Vehicles |
|---|---|---|
| Motor Vehicle Tax | 20% | New petrol, CNG, LPG non-transport vehicles |
| Motor Vehicle Tax | 15% | New diesel vehicles |
| Motor Vehicle Tax | 10% | New diesel transport vehicles |
| Certificate Validity | 3 years | – |
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