Maharashtra Government Offers 15% Tax Rebate On New Vehicle Purchases For Voluntarily Scrapping Old Vehicles
Maharashtra Government Offers 15% Tax Rebate On New Vehicle Purchases For Voluntarily Scrapping Old Vehicles
Mumbai: In a major policy decision, the Maharashtra government led by Chief Minister Devendra Fadnavis has announced a significant tax relief to encourage the voluntary scrapping of old vehicles. As per the new rule approved in the recent cabinet meeting, vehicle owners who voluntarily scrap their old vehicles will be eligible for a 15% tax rebate on the purchase of a new vehicle.
This initiative is aimed at reducing the number of ageing vehicles in cities like Mumbai, Thane, Pune, Nashik, and Nagpur, ultimately contributing to lower pollution levels.
Previously, a 10% rebate was offered for scrapping transport vehicles within 8 years of registration and non-transport vehicles within 15 years under the Registered Vehicle Scrapping Facility (RVSF). Now, the updated policy offers a flat 15% rebate on one-time tax for both categories.
For transport vehicles with annual tax liabilities, the 15% tax discount will be applicable for 8 years from the date of registration of the new vehicle. Non-transport vehicles will enjoy the rebate for 15 years.
Vehicle owners must scrap their old vehicle at an RVSF and receive a certificate, which will be valid for claiming the tax rebate within two years of issuance. This benefit will apply to two-wheelers, three-wheelers, and light motor vehicles, provided the scrapping is done within three years from the date the official notification is released.
This policy is expected to boost new vehicle sales while contributing to a cleaner environment across the state.
