Gujarat Offers Up To 50% Motor Vehicle Tax Concession For Scrapping Eligible Old Vehicles, Check March 2027 Deadline

The Gujarat government has introduced a scheme offering up to a 50% reduction in Motor Vehicle Tax for those who scrap eligible old vehicles and purchase new ones. This incentive is tied to a Certificate of Deposit (COD) issued upon authorized scrapping. The concession is available until March 31, 2027, according to a notification from the Ports and Transport Department.

Viable vehicles include those manufactured under BS-I and earlier emission standards, as well as medium and heavy goods and passenger vehicles under BS-II standards. After scrapping an eligible vehicle through an authorized facility, the owner receives a COD, which can be presented during the registration of a new vehicle to claim the tax concession.

The calculation of Motor Vehicle Tax remains unchanged, with the new provision linking authorized scrapping with a tax benefit on the registration of a replacement vehicle. Owners of older commercial vehicles are particularly encouraged to take advantage of this incentive when replacing their vehicles. The deadline for obtaining the COD to avail of the concession is March 31, 2027.