Mumbai |
In a significant move to promote cleaner mobility and responsible vehicle disposal, the Maharashtra state cabinet has approved a 15% tax concession for vehicle owners who voluntarily scrap their old vehicles and purchase a new one of the same type.
The decision was made during a cabinet meeting chaired by Deputy Chief Minister Devendra Fadnavis, and the policy is expected to support both environmental sustainability and the state’s broader vehicle scrappage ecosystem.
Here’s What the Policy Offers
✅ Who is eligible?
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Owners of transport and non-transport vehicles who voluntarily scrap their old vehicles at a Registered Vehicle Scrappage Facility (RVSF).
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Tax concession applicable only while registering a new vehicle of the same type — be it a two-wheeler, three-wheeler, or light motor vehicle.
✅ How much tax benefit?
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A 15% tax concession for transport and non-transport vehicles is subject to lump sum tax.
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10% concession if the vehicle is voluntarily scrapped:
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Within 8 years of registration (for transport vehicles)
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Within 15 years of registration (for non-transport vehicles)
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✅ For annually taxed vehicles:
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A 15% annual concession for:
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8 years (transport vehicles)
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15 years (non-transport vehicles) from the date of new registration
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Certificate of Deposit Validity
The Certificate of Deposit issued after scrapping a vehicle at an RVSF will remain valid for two years and must be submitted to avail the tax rebate.
Policy Timeline
To be eligible, vehicle scrapping must take place within three years from the date of official notification under this scheme.
Why It Matters
This initiative is aimed at:
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Reducing the number of old, polluting vehicles on the road
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Boosting demand for new, fuel-efficient and electric vehicles
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Supporting the national vehicle scrappage policy goals and promoting cleaner urban mobility
With increasing urban congestion and pollution concerns, Maharashtra’s vehicle scrappage-linked tax benefit policy is expected to nudge vehicle owners towards timely replacement and support a more sustainable transport ecosystem.
