Delhi plans Rs 50,000 cut on road tax for new vehicles against scrapping used cars

Delhi scrap policy: This new proposal aims to reduce the number of older vehicles on Delhi roads, which are more polluting to the environment.

The Delhi government has revised its draft scarp policy with a straight Rs 50,000 cut on road tax for new vehicles against scrapping of used cars.

This proposal aims to contain environmental hazards by reducing the number of worn-out vehicles plying on Delhi roads. The draft policy prepared by the transport department awaits clearance from the finance department before it is placed before the public to get their views and suggestions.

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This move comes on the back of many vehicles running on Delhi roads past their lifespan. According to the rules, petrol vehicles over the age of 15 and diesel vehicles over 10 years are not allowed in the National Capital Region (NCR).

Around 55 lakh vehicles were deregistered in Delhi between 2021-22 and 2022-23, according to a media report. However, out of those, only 1.4 lakh were scraped and owners of 6.3 lakh vehicles managed to obtain a no-objection certificate from the transport department for registering their vehicles outside the NCR.

Earlier, the transport department had impounded such vehicles but it was put on the backburner after the Delhi High Court intervened following public backlash. The court had then directed the government to prepare a new scrap policy.

In this new scrap policy, owners would receive a "certificate of deposit" on scrapping their old vehicles, which will allow them to avail the road tax discount while purchasing a new vehicle. The discount will be granted only for the same category of vehicle that was scrapped.

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