On October 18, 2024, the Transport Department of New Delhi announced a significant policy update regarding the registration tax for new transport and non-transport vehicles. This initiative aims to promote the scrapping of old vehicles and encourage the adoption of newer, more environmentally friendly models.
Key Features of the Notification
1. Tax Reductions for New Vehicle Registration:
- Non-Transport Vehicles:
- 20% reduction in Motor Vehicle Tax for new petrol/CNG/LPG vehicles.
- 15% reduction for new diesel vehicles.
- Transport Vehicles:
- 15% reduction in Motor Vehicle Tax for new petrol/CNG/LPG vehicles.
- 10% reduction for new diesel vehicles.
2. Conditions for Tax Concessions:
- The tax concessions are applicable only when a Certificate of Deposit (COD) is provided, indicating that an old vehicle has been scrapped at a Registered Vehicle Scrapping Facility (RVSF).
- The total tax concession cannot exceed 50% of the scrap value of the old vehicle.
Important Definitions and Explanations
- Certificate of Deposit (COD): Defined in Rule 3 of the Motor Vehicles (Registration and Functions of Vehicle Scrapping Facility) Rules, 2021. This certificate is essential for claiming the tax concession.
- Validity: The COD is valid for three years from the date of issuance and can be traded electronically. However, it is not applicable for government-owned or impounded vehicles, which cannot be traded.
- Scrap Value: The scrap value of the vehicle will be specified in the COD, serving as the basis for calculating the maximum allowable tax concession.
Conclusion
This new notification encourages vehicle owners to dispose of older models responsibly while benefiting from reduced registration taxes on new vehicles. By facilitating the transition to newer vehicles, the initiative aims to enhance environmental sustainability and improve road safety in New Delhi
