New scheme: Get discount on registration of new vehicle - if you scrap overage one

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Last Updated07/11/2024

The Delhi government has notified a new tax rebate incentive scheme, under which owners will get discount on registration of a new vehicle after getting their old petrol and diesel vehicles.

The Delhi government has introduced a new tax rebate scheme to incentivize the scrapping of old petrol and diesel vehicles. Under this scheme, vehicle owners can receive discounts on the registration of a new vehicle after scrapping their old vehicles—petrol vehicles over 15 years old and diesel vehicles over 10 years old—at a government-approved Registered Vehicle Scrapping Facility (RVSF).
This initiative aims to promote the replacement of older vehicles with eco-friendly models.

Discount on New Vehicle Registration: Vehicle owners will receive tax rebates on the registration of new vehicles upon submitting a Certificate of Deposit (COD) for their scrapped vehicles.
Concessions Offered:
- For Personal (Non-Transport) Vehicles:
  - 20% rebate on motor vehicle tax for petrol, CNG, and LPG vehicles.
  - 15% rebate for diesel vehicles.
- For Commercial (Transport) Vehicles:
  - 15% rebate on petrol, CNG, and LPG vehicles.
  - 10% rebate for diesel vehicles.
Limit on Tax Concession: The tax concession is capped at 50% of the scrap value for both transport and non-transport vehicles.

Purpose: The COD serves as proof that an old vehicle has been scrapped at an authorized RVSF, allowing owners to claim tax rebates on new vehicle registrations.
Validity: The COD is valid for three years from the date of issuance.
Electronic Trading: The COD is electronically tradable, except for those issued against government-owned or impounded vehicles, which cannot be traded and do not qualify for incentives.

Pollution Concerns: With Delhi facing rising pollution levels, the scheme is part of a larger effort to phase out older, high-pollution vehicles.
Enforcement Drive: As of October 11, a joint initiative by the transport department, MCD, and Traffic Police has led to the impounding of over 3,000 illegal or abandoned vehicles, which are being sent to RVSFs for scrapping.

The scheme was officially notified on October 15, and eligible vehicle owners can now avail of the incentives by following the prescribed scrapping and registration process.