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Maharashtra Proposes Tax Concessions for Vehicle Scrapping, Higher Green Tax on Older Cars

By: Editorial Desk

by Editorial Desk
March 6, 2026
in Governance, Maharashtra
Reading Time: 1 min read
Maharashtra CM Devendra Fadnavis proposes tax concessions for scrapping old vehicles and higher environmental tax on older private vehicles to reduce pollution and modernise the vehicle fleet.

Maharashtra CM Devendra Fadnavis proposes tax concessions for scrapping old vehicles and higher environmental tax on older private vehicles to reduce pollution and modernise the vehicle fleet.

Summarize with:

Mumbai: The Devendra Fadnavis-led government in Maharashtra proposed tax concessions for buyers who scrap old vehicles and purchase new ones, while also suggesting higher environmental taxes on certain older private vehicles to reduce pollution.

Presenting the proposal in the state Assembly, Chief Minister Fadnavis said the measures are intended to discourage the use of fuel-inefficient and highly polluting vehicles and accelerate the replacement of older models.

Under the proposal, buyers scrapping vehicles compliant with BS-4 or higher emission standards and purchasing new vehicles will receive a 16 per cent concession in motor vehicle tax. For those scrapping vehicles with BS-3 or older emission norms, the concession would increase to 30 per cent.

At the same time, the government has proposed doubling the environmental tax on non-transport (private) vehicles with BS-4 and older emission standards, citing their higher contribution to air pollution.

The government has also suggested capping the motor vehicle tax on crane-mounted vehicles at a maximum of Rs 30 lakh.

According to Fadnavis, the steps are part of the state’s broader effort to modernise its vehicle fleet, curb pollution and improve air quality.

Also Read –
Karnataka to Set Up AI Centre of Excellence, Ban Social Media for Children Under 16: CM Siddaramaiah

 

Summarize with:
Tags: Chief Minister Devendra FadnavisGreen TaxMaharashtra governmentVehicle Scrapping
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