Vehicle scrappage may be a very attractive proposition for consumers as well as auto OEMS but truth is most of it is still on paper. To promote vehicle scrapping, the Government of Delhi has proposed tax concession of scrapping old vehicles to the Lt Governor VK Saxena. At the time of filing this report, there has been no confirmation on the proposal.
According to a PTI report, the new proposal aims to offer reductions in Motor Vehicle Tax, for the registration of new vehicles in exchange for scrapping of old vehicles. Under the revised policy, vehicle owners who get the old vehicles scrapped at a Registered Vehicle Scrappage Facility (RVSF) and submit a Certificate of Deposit at a vehicle showroom will be liable to tax concessions for the new vehicle purchase.
This proposal is extended to transport and non-transport vehicles. For non-transport vehicles, the concession proposed includes 20 percent reduction in petrol, CNG and LPG vehicles, and 15 percent reduction in taxes for diesel vehicles. For transport vehicles, the tac reductions proposed are 15 percent for petrol, CNG and LPG, and 10 percent for diesel vehicles.
However, there is a catch. The total tax concession cannot exceed 50 percent of the scrap value of the old vehicle. The latest development was announced by Minister of Transport in Delhi Government, Kailash Gehlot, stating that the new policy aims to address pollution by encouraging decommission of old, polluting vehicles, and providing a transition to greener mobility options.
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