Maharashtra Introduces 15% Tax Rebate for New Vehicle Purchases When Old Ones Are Scrapped

The Maharashtra cabinet has approved a 15% tax reduction for vehicle owners who choose to scrap their old vehicles and buy new ones of the same type. This decision was announced by the Chief Minister's Office (CMO) following a cabinet meeting led by Chief Minister Devendra Fadnavis.

Tax Concession Details

Transport vehicles scrapped within eight years of registration at a Registered Vehicle Scrappage Facility (RVSF) will receive a 10% tax concession. Non-transport vehicles scrapped within 15 years of registration will also be eligible for this benefit. A 15% tax concession applies to both transport and non-transport vehicles subject to lump sum tax.

The statement further explained that vehicles subject to annual tax will receive a 15% annual tax concession. This applies for eight years from the registration date for transport vehicles and 15 years for non-transport vehicles. The Certificate of Deposit, obtained after scrapping at an RVSF, is valid for two years for claiming this tax benefit.

Eligibility and Conditions

To qualify for the tax concession, the vehicle must be scrapped voluntarily within three years from the notification's publication date. The concession is applicable when registering a new vehicle of the same type, such as two-wheelers, three-wheelers, or light motor vehicles, after purchase.

This initiative aims to encourage vehicle owners to replace older vehicles with newer, more environmentally friendly models. The policy is part of efforts to reduce pollution and promote sustainable practices in the state.