Maharashtra Budget 2026 Encourages BS-IV Vehicle Scrapping, Penalizes Older Vehicles To Reduce Pollution
Devendra Fadnavis announced tax concessions for owners scrapping older vehicles, doubling environment tax on outdated cars and bikes. New rules under the Jan Vishwas Act replace jail with penalties up to ₹1 lakh, aiming to promote cleaner vehicles and simplify enforcement in Mumbai.
Maharashtra Budget 2026 Encourages BS-IV Vehicle Scrapping, Penalizes Older Vehicles To Reduce Pollution | Anand Chaini
Mumbai: Chief Minister Devendra Fadnavis proposed concessions in motor vehicle (MV) tax for those purchasing a new vehicle after scrapping an old one, as part of measures to curb pollution and encourage cleaner vehicles.
A 16% tax concession will be offered to owners scrapping vehicles compliant with BS-IV and above emission norms and purchasing new ones. Those scrapping vehicles with BS-III and below emission norms will receive a 30% concession.
The environment tax on older private vehicles will be doubled. The tax on two-wheelers will increase from `2,000 to `4,000. For petrol light motor vehicles, the tax will rise from `3,000 to `6,000, while diesel light motor vehicles will increase from `3,500 to `7,000.
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Meanwhile, under the Jan Vishwas Act passed by the state government, the budget proposes penal provisions instead of jail terms under Sections 59, 60, 63A and 68A of the Maharashtra Stamp Act, with penalties revised from `5,000 to up to `1 lakh.
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