In a significant move aimed at encouraging vehicle owners to phase out older, polluting vehicles, the Maharashtra cabinet has approved a new tax rebate scheme. According to an official statement from the Chief Minister’s Office (CMO), vehicle owners who voluntarily scrap their old vehicles at authorised facilities will be eligible for tax concessions of up to 15% when purchasing a new vehicle of the same category.
The initiative provides tax relief to both transport and non-transport vehicle owners who retire their vehicles voluntarily at a Registered Vehicle Scrappage Facility (RVSF). The scheme is designed to promote responsible vehicle disposal while supporting the purchase of cleaner, newer models.
Certificate of Deposit:
Owners who scrap their vehicles at an RVSF will receive a Certificate of Deposit, which acts as proof for availing the rebate. This certificate will be valid for 2 years from the date of issue.
Same Vehicle Category Requirement:
The rebate will only apply when the new vehicle purchased is of the same category—be it a 2-wheeler, 3-wheeler, or light motor vehicle—as the one scrapped.
Time Frame for Eligibility:
The scrapping must occur within 3 years from the publication date of the official notification to be eligible for the concession.
While the scheme does not make scrapping compulsory, it is clearly a strategic initiative to promote cleaner, safer, and more fuel-efficient vehicles across Maharashtra. It also supports the formalisation of vehicle scrapping through RVSFs, ensuring environmentally responsible disposal of end-of-life vehicles.
The new tax rebate scheme reflects Maharashtra’s proactive approach towards reducing vehicular emissions and modernising its on-road vehicle fleet. By offering tangible financial incentives, the state hopes to accelerate the shift towards newer vehicles while simultaneously phasing out older, potentially more polluting ones.
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Published on: Apr 3, 2025, 3:19 PM IST
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