The Maharashtra cabinet on Tuesday, April 1, decided to provide a 15% tax concession to owners who voluntarily scrap their vehicles when purchasing a new one of the same type. A statement from the Chief Minister’s Office (CMO) said tax concession of 10% will be given to transport vehicles voluntarily scrapped within eight years of registration at a Registered Vehicle Scrappage Facility (RVSF) and to non-transport vehicles voluntarily scrapped within 15 years of registration.
A 15% tax concession will be given to transport and non-transport vehicles subject to a lump sum tax, said the statement issued after a cabinet meeting presided over by Chief Minister Devendra Fadnavis. Whereas, a 15% annual tax concession will be given to vehicles subject to annual tax for the next eight years from the date of registration in the transport category and for non-transport ones for the next 15 years, it said. The Certificate of Deposit received by the owner after scrapping the vehicle at RVSF will be valid for two years for tax concession.
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This tax concession will be applicable while registering the same type of vehicle — two-wheeler, three-wheeler or light motor vehicle after purchase. The relief will be available if such a vehicle is scrapped voluntarily within three years from the date of publication of the notification in this regard, the statement said.