By: Arvind Jadhav
Incentive Announced
The Maharashtra cabinet has announced a significant incentive for vehicle owners who voluntarily scrap their old vehicles when purchasing a new one of the same type. A 15% tax concession will be provided to owners who opt for voluntary scrapping, aiming to promote the replacement of old vehicles with newer, more environmentally friendly models.
Eligibility Criteria
As per the Chief Minister’s Office (CMO) statement, transport vehicles voluntarily scrapped within eight years of registration at a Registered Vehicle Scrappage Facility (RVSF) will receive a 10% tax concession. Similarly, non-transport vehicles scrapped within 15 years of registration will also receive a 10% concession. Additionally, a 15% tax concession will be applicable to transport and non-transport vehicles subject to lump sum tax.
Tax Concession Details
The tax concession will be valid for two years from the date of issuance of the Certificate of Deposit, which is received by the owner after scrapping the vehicle at RVSF. This incentive will be applicable while registering the same type of vehicle, including two-wheelers, three-wheelers, or light motor vehicles, after purchase. The relief will be available if the vehicle is scrapped voluntarily within three years from the date of publication of the notification.
Benefits and Validity
The move is expected to encourage vehicle owners to replace their old vehicles, promoting a cleaner and more sustainable environment. With the growing concern over air pollution and vehicle emissions, this initiative is a step in the right direction.
