In a bid to promote vehicle scrappage and curb pollution, the Maharashtra cabinet has approved a 15% tax concession for vehicle owners who voluntarily scrap their old vehicles while purchasing a new one of the same type. The decision was taken during a cabinet meeting chaired by Chief Minister Devendra Fadnavis on Tuesday.
According to a statement from the Chief Minister’s Office (CMO), a 10% tax concession will be provided to transport vehicles voluntarily scrapped within eight years of registration at a Registered Vehicle Scrappage Facility (RVSF) and to non-transport vehicles scrapped within 15 years of registration.
A 15% tax concession will apply to transport and non-transport vehicles subject to lump sum tax. For vehicles under annual taxation, the rebate will be applicable for the next eight years from the date of registration in the transport category and for the next 15 years for non-transport vehicles.
Owners will receive a Certificate of Deposit after scrapping their vehicle at an RVSF, which will remain valid for two years to avail of the tax concession. This relief will apply to registering the same type of vehicle—two-wheeler, three-wheeler, or light motor vehicle—after purchase. The scheme will be available for vehicles voluntarily scrapped within three years from the date of notification publication.
