Delhi govt to give tax concession on registration of new vehicles…but there’s a catch

The Delhi Government is considering offering a concession in the Motor Vehicles Tax for registration of new transport and non-transport vehicles. 

However, this concession will apply only if a certificate of deposit is submitted for an old vehicle handed over for scrapping at a Registered Vehicles Scrapping Facility (RVSF). A proposal has been sent to the Lieutenant Governor for approval. 

The government has announced a concession for non-transport vehicles. There will be a 20 per cent reduction in the Motor Vehicles Tax for new petrol, CNG, or LPG vehicles. New diesel vehicles will get a 15 per cent reduction. Transport vehicles will receive a 15 per cent reduction in the Motor Vehicles Tax for new petrol, CNG, or LPG vehicles, and a 10 per cent reduction for new diesel vehicles.

Commenting on this, Transport Minister Kailash Gahlot said, "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." 

The total Motor Vehicles Tax concessions will not exceed 50% of the scrap value. The Certificate of Deposit is valid for three years and can be traded electronically.