Maharashtra Budget 2026: Accelerating Eco-Friendly Vehicle Transition

The Maharashtra Budget 2026-27, presented by CM Devendra Fadnavis, focuses on reducing pollution by incentivizing the scrapping of old vehicles. It proposes motor vehicle tax concessions for scrapping older vehicles and buying new ones while increasing environmental tax on certain older private vehicles to improve air quality.

The Maharashtra Budget for 2026-27, unveiled by Chief Minister Devendra Fadnavis, includes pivotal initiatives aimed at reducing vehicle emissions. Notably, it introduces motor vehicle tax concessions for individuals scrapping older vehicles and purchasing new models. These measures target fuel-inefficient vehicles to enhance the state's air quality.

Under the new policy, scrapping vehicles meeting BS-4 and above norms will garner a 16% tax concession, while a more substantial 30% discount is offered for scrapping vehicles with BS-3 and below standards. This initiative is designed to encourage replacing older, high-emission vehicles.

Furthermore, the government plans to double the environmental tax on BS-4 and below non-transport vehicles, reflecting its commitment to environmental sustainability. Additionally, the budget proposes a cap on tax for crane-mounted vehicles, restricting it to a maximum of ₹30 lakh.

(With inputs from agencies.)