Mumbai: The state cabinet on Tuesday announced a 15% tax concession for new vehicles if old vehicles are voluntarily scrapped.
A decision was made in the cabinet meeting to provide the tax concession to vehicle owners who voluntarily scrap their vehicles while purchasing a new vehicle of the same type again.
The 15% tax discount is for both transport and non transport vehicles.
“At the registered vehicle scrappage centre (RVSF), transport vehicles were given a tax concession of 10% if the vehicle was voluntarily scrapped within eight years of registration, and non-transport vehicles were given a tax concession of 10% if the vehicle was voluntarily scrapped within 15 years of registration. Henceforth, a 15% tax concession will be given to transport and non-transport vehicles subject to lump sum tax. So, for vehicles that are subject to annual tax, a 15% discount will be given on annual tax for the next eight years from the date of registration of vehicles in the transport category and for non-transport category vehicles for the next 15 years. The certificate of deposit received by the vehicle owner after scrapping the vehicle at the RVSF will be valid for the next two years for tax concession,” an official said.
“This tax concession will be applicable while registering the same type of vehicle, ie, two-wheeler, three-wheeler, or light motor vehicle, after it is scrapped. This tax concession will be available if such a vehicle is scrapped voluntarily within three years from the date of publication of this notification,” an official said.
At present, there is a green tax in Maharashtra for vehicles over 15 years. Since the scrappage policy was launched in 2022, 50 RTOs across the state have been conducting stringent checks to ensure people pay green tax and get fitness certificates for older vehicles.
This policy also stops illegal scrapping of vehicles, especially stolen vehicles which were found to be given to some of the scrap dealers recently, a former RTO official said.
The new hikes in discount will give more incentive for people to opt for voluntary scrapping for both transport and non transport vehicles. A former official said there must be a drive to get vehicles scrapped and more awareness needs to be created.
Mumbai: The state cabinet on Tuesday announced a 15% tax concession for new vehicles if old vehicles are voluntarily scrapped.
A decision was made in the cabinet meeting to provide the tax concession to vehicle owners who voluntarily scrap their vehicles while purchasing a new vehicle of the same type again.
The 15% tax discount is for both transport and non transport vehicles.
“At the registered vehicle scrappage centre (RVSF), transport vehicles were given a tax concession of 10% if the vehicle was voluntarily scrapped within eight years of registration, and non-transport vehicles were given a tax concession of 10% if the vehicle was voluntarily scrapped within 15 years of registration. Henceforth, a 15% tax concession will be given to transport and non-transport vehicles subject to lump sum tax. So, for vehicles that are subject to annual tax, a 15% discount will be given on annual tax for the next eight years from the date of registration of vehicles in the transport category and for non-transport category vehicles for the next 15 years. The certificate of deposit received by the vehicle owner after scrapping the vehicle at the RVSF will be valid for the next two years for tax concession,” an official said.
“This tax concession will be applicable while registering the same type of vehicle, ie, two-wheeler, three-wheeler, or light motor vehicle, after it is scrapped. This tax concession will be available if such a vehicle is scrapped voluntarily within three years from the date of publication of this notification,” an official said.
At present, there is a green tax in Maharashtra for vehicles over 15 years. Since the scrappage policy was launched in 2022, 50 RTOs across the state have been conducting stringent checks to ensure people pay green tax and get fitness certificates for older vehicles.
This policy also stops illegal scrapping of vehicles, especially stolen vehicles which were found to be given to some of the scrap dealers recently, a former RTO official said.
The new hikes in discount will give more incentive for people to opt for voluntary scrapping for both transport and non transport vehicles. A former official said there must be a drive to get vehicles scrapped and more awareness needs to be created.
