Mumbai, March 6 The Maharashtra Budget for 2026-27, presented by Chief Minister Devendra Fadnavis in the assembly on Friday, proposes 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 that these measures are aimed at discouraging the use of fuel-inefficient and polluting vehicles, improving air quality in the state, and also accelerating the replacement of older vehicles that contribute more to pollution.
"While scrapping vehicles with 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 with 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 stated that the government proposes to increase the environmental tax on older non-transport (private) vehicles.
"Non-transport (private) vehicles with BS-4 and below emission norms cause more air pollution. Therefore, it is proposed to double the environmental tax on such vehicles," Fadnavis said.
The state government has also proposed to cap the tax on crane-mounted vehicles, he said.
"The tax under the Motor Vehicles Act on crane-mounted vehicles will be limited to a maximum of Rs 30 lakh," he said.
Fadnavis said that these measures are part of the government's efforts to modernize the state's vehicle fleet, reduce pollution, and improve overall air quality.