Tax concessions for those buying vehicles after scrapping scrapping older ones

The Maharashtra government has proposed a series of measures to reduce vehicular pollution and modernise the statersquos vehicle fleet including tax concessions for people who scrap old vehicles and purchase new ones The proposals were announced by Chief Minister Devendra Fadnavis while presenting the Maharashtra Budget 2026ndash27 in the state assembly on FridayThe budget outlines incentives for scrapping older vehicles a hike in environmental tax on certain ageing private vehicles and financial relief measures for farmers among other key announcements The government said the initiatives are aimed at improving air quality encouraging cleaner vehicles and strengthening the statersquos economic growthTax concessions for scrapping old vehiclesIn his Budget speech Fadnavis proposed concessions in motor vehicle tax for buyers who scrap old vehicles before purchasing new onesAccording to the proposal individuals who scrap vehicles compliant with BS4 and higher emission norms and buy new vehicles will receive a 16 per cent concession in motor vehicle tax Those scrapping older vehicles that fall under BS3 and below emission norms will be eligible for a 30 per cent concession while purchasing a new vehicleThe chief minister said the move is intended to encourage owners to replace ageing vehicles that contribute significantly to pollutionldquoThese measures are aimed at discouraging the use of fuelinefficient and polluting vehicles improving air quality in the state and accelerating the replacement of older vehiclesrdquo he saidEnvironmental tax on older vehicles to doubleAlongside incentives for scrapping vehicles the government has also proposed to increase environmental taxes on certain private vehiclesFadnavis said nontransport private vehicles with BS4 and older emission standards generate higher levels of pollution and therefore the state plans to double the environmental tax on such vehiclesThe proposal is part of a broader strategy to curb emissions from ageing vehicles and encourage a shift towards newer cleaner automobilesCap on tax for cranemounted vehiclesThe government has also proposed a cap on taxes levied on cranemounted vehiclesUnder the new proposal motor vehicle tax on cranemounted vehicles will be capped at a maximum of Rs 30 lakh according to the chief ministerThe step is expected to provide relief to operators in the infrastructure and construction sectors who use heavy cranemounted equipmentLoan waiver for farmers announcedApart from transportrelated measures the budget also introduced relief for farmers Fadnavis announced a loan waiver scheme for crop loans up to Rs 2 lakh taken until September 30 2025The scheme named Punyashlok Ahilyadevi Holkar Shetkari Karjmafi Yojana is expected to benefit a large number of farmers across MaharashtraIn addition farmers who have maintained regular repayment of their loans will receive an incentive of Rs 50000 the chief minister saidLadki Bahin scheme to continue rural connectivity focusFadnavis also confirmed that the Mukhyamantri Majhi Ladki Bahin Yojana a welfare scheme aimed at supporting women will continue and receive adequate financial allocationThe government has also proposed improving rural connectivity by ensuring that all villages with a population of more than 1000 are connected by concrete roadsHighlighting Maharashtrarsquos economic ambitions the chief minister said the state remains the financial engine of the country and aims to become a USD 5 trillion economy by 2047Emotional tribute to Ajit Pawar in assemblyDuring the budget presentation Fadnavis paid tribute to former state finance minister Ajit Pawar who passed away in an air crash earlier this yearHe announced that the government will establish a befitting memorial in honour of the late Nationalist Congress Party leaderThe assembly witnessed emotional scenes as members raised slogans of ldquoAjit Dada Amar Raherdquo when Fadnavis stood up to present the budget paying homage to the veteran leader