Tax structure explained: Delhi govt offers rebate for scrapping old cars
Source: Business Standard
The Delhi government has announced a new incentive scheme to promote the scrapping of old vehicles. Under this scheme, buyers of new vehicles who opt to scrap their old ones will be eligible for a tax rebate of 10-20%.
“The government will incentivise those who opt for the scrapping of their old vehicles, through rebate in motor-vehicle tax on buying new vehicles within three years,” said the Delhi government statement. By offering a higher rebate for cleaner fuel options like CNG and petrol, the government is promoting a shift towards less polluting vehicles.
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Key Points:
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Tax Rebate: The rebate will be applicable on the purchase of new vehicles. -
Old Vehicle Scrapping: Buyers must scrap their old vehicles to qualify for the rebate. -
Notification: The scheme will be formally notified soon.
Tax Rebate Structure:
The rebate amount varies depending on the type of new vehicle you purchase:
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20% Rebate: Applies to non-commercial CNG (Compressed Natural Gas) and petrol vehicles. -
15% Rebate: Applies to commercial CNG and petrol vehicles. -
10% Rebate: Applies to diesel vehicle
The policy is aimed at removing old and polluting vehicles on the road by promoting the use of less-polluting ones having upgraded emission standards, it said.
To avail of the discount under the scheme, one must obtain a Certificate of Deposit while scrapping their old vehicle at a registered scrapping facility, and this document must be submitted during the registration of new commercial and non-commercial vehicles within three years from the date of issue to avail discounts on Motor Vehicle Tax.
Benefits:
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Reduced Pollution: Scrapping old vehicles can help reduce pollution and improve air quality. -
Economic Stimulus: The scheme can stimulate the demand for new vehicles, benefiting the automotive industry. -
Financial Incentive: The tax rebate provides a financial incentive for consumers to upgrade their vehicles.
According to the Delhi government, the scheme is expected not only to provide much-needed relief to consumers amidst inflation but also to reduce the number of old polluting vehicles on the road.
First Published: Oct 03 2024 | 8:28 AM IST
