New Delhi: Delhi Government led by Chief Minister Arvind Kejriwal today gave in-principle approval to provide concession on road tax to new vehicle buyers after scrapping of their old vehicles.

The policy will come into effect after its final approval by Lieutenant Governor of Delhi and promote scrapping and replacement of old polluting vehicles with new vehicles of upgraded fuel standards.

The government has decided to offer a maximum concession of 25% in case of non-transport vehicles and 15% in case of transport vehicles upon production of certificate of scrapping (certification of deposit) by new vehicle buyers. The ‘certificate of deposit’ will be issued at the registered scrapping facilities of the government upon scrapping of old vehicles.

The Government has introduced concession to new buyers in three vehicle categories:

A- For non-transport vehicles, the concession will range from 8% to 25% based on cost of new vehicle and fuel type, as per table attached

B- 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 given in the table with respect to road tax provided at the time of registration of new vehicles.

C- The motor vehicle tax concession on purchase of new transport (commercial) vehicles on production of certificate of deposit will be 15% of total motor vehicle tax paid at the time of registration of new vehicles.

The concession in road tax granted under the policy will be allowed only for the same category of vehicles i.e. the category of vehicles for which the certificate of deposit will be produced to the registration authority. The concession will be available upto eight years in case of transport vehicles and upto fifteen years, in case of non-transport vehicles and there will be no concession available after these periods.

With the introduction of the policy, the Delhi government aims to reduce congestion on Delhi’s roads and bring down the number of polluting aged vehicles. The policy will pave the way for scrapping of old vehicles and introduction of new vehicles with upgraded pollution norms.

It will also help with establishment of a circular economy in the transportation sector, reducing the vehicle scrappage and those old vehicles which are lying unutilized. Delhi government has already implemented various initiatives to curb air pollution and promote environmental sustainability in the capital such as adoption of Electric Vehicle Policy 2020.

With an objective to electrify its city bus fleet, it has inducted 250 new electric buses under Delhi Transport Corporation (DTC). By 2023, Delhi will see 1550 more electric buses by 2023 and 6380 new electric buses will be introduced in Delhi’s urban transportation fleet by 2025. It also implemented an odd-even scheme to reduce ambient air pollution in the city.

Speaking at the occasion, Delhi’s Transport Minister Kailash Gahlot further stated, “We have to find every possible way to promote a circular economy and establish mobility infrastructure which is environmentally sustainable. A lot of cities in the world are struggling with waste disposal and looking for efficient solutions. I am confident that the policy will encourage vehicle owners in Delhi to replace and scrap their old vehicles with new vehicles of higher emission standards. I would rather urge them to buy an EV than any other type of vehicle to help our city become clean.”