The Delhi government on Wednesday announced a special scheme offering discounts on Motor Vehicle Tax, allowing city residents to claim up to a 20 per cent rebate on the purchase of new vehicles by scrapping their old ones.

Delhi Chief Minister Atishi has approved the scheme, and it will be notified soon, an official statement said on Wednesday.

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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 by promoting the use of those with the latest emission standards, which generate less pollution.

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.

The Delhi government will offer a 20 per cent tax rebate on the registration of new non-transport petrol, CNG, and LPG vehicles, and a 15 per cent discount for diesel vehicles.

Similarly, a 15 per cent tax discount will be provided on the purchase of petrol, CNG, and LPG commercial vehicles, and 10 per cent on diesel ones.

Meanwhile, regulations in Delhi are becoming stricter, with diesel vehicles older than ten years and petrol vehicles older than fifteen years being prohibited from operating on city roads.