Maharashtra's New Tax Concession Plan: A Boost for Vehicle Scrapping

The Maharashtra government has introduced a 15% tax concession for vehicle owners scrapping their vehicles voluntarily. The scheme applies to transport vehicles scrapped within eight years and non-transport vehicles within 15 years. This concession is valid for two years upon scrapping and purchasing a similar type of vehicle.

The Maharashtra government has unveiled a new policy offering substantial tax concessions to vehicle owners. Under the scheme, a 15% tax rebate is available for owners who voluntarily scrap their vehicles when buying a similar type. This initiative is designed to encourage the replacement of older vehicles, thereby promoting environmental sustainability and modernization.

A statement from the Chief Minister's Office confirmed that the tax concession will amount to 10% for transport vehicles voluntarily scrapped within eight years of registration, and for non-transport vehicles within 15 years. Additionally, a 15% tax break applies to vehicles subject to lump sum taxes. This measure is expected to accelerate vehicle scrapping and stimulate new vehicle purchases.

The Certificate of Deposit provided after scrapping the vehicle at a Registered Vehicle Scrappage Facility will serve as proof for availing tax concessions. This certification will remain valid for two years, and the relief will be applicable while purchasing a new vehicle of the same type. The policy is set to roll out within three years from the notification's publication.

(With inputs from agencies.)