Maharashtra Budget: Tax concessions for those buying vehicles after scrapping older ones

Mumbai, Mar 6 (PTI) The Maharashtra Budget for 2026-27 presented by Chief Minister Devendra Fadnavis in the assembly on Friday has proposed concessions in motor vehicle tax for buyers who scrap old vehicles as well as an increase in environmental tax on certain older private vehicles to curb pollution.

In his Budget speech, the CM said these measures are aimed at discouraging the use of fuel-inefficient and polluting vehicles, improving air quality in the state and also accelerate the replacement of older vehicles that contribute more to pollution.

"While scrapping old vehicles having BS-4 and above emission norms and purchasing new vehicles, a 16 per cent concession in motor vehicle tax is proposed. For those scrapping vehicles having BS-3 and below emission norms and buying new vehicles, a 30 per cent concession in motor vehicle tax is proposed," he said.

He further said the government has proposed to increase environmental tax on older non-transport (private) vehicles.

"Non-transport (private) vehicles having BS-4 and below emission norms cause more air pollution. Hence, it is proposed to double the environmental tax on such vehicles," Fadnavis said.

The state government has also proposed to cap tax on crane-mounted vehicles, he said.

"Tax under the Motor Vehicles Act on crane-mounted vehicles will be limited to a maximum of Rs 30 lakh," he said.

Fadnavis said these measures are part of the government's efforts to modernise the state's vehicle fleet, reduce pollution and improve overall air quality. PTI ND BNM