Daijiworld Media Network - Mumbai

Mumbai, Mar 7: The government of Maharashtra has proposed new measures in its 2026–27 state budget to reduce vehicular pollution by encouraging the scrapping of older vehicles while offering incentives for purchasing cleaner models. The budget was presented by Chief Minister Devendra Fadnavis.

Under the proposal, owners who scrap older vehicles and buy new ones will receive concessions on motor vehicle tax. A 16 per cent rebate will be offered to those replacing BS-4 emission-compliant vehicles, while the rebate will increase to 30 per cent for those scrapping BS-3 or older vehicles, encouraging a faster phase-out of high-emission engines.

At the same time, the government plans to double the environmental or green tax on non-transport private vehicles that meet BS-4 and lower emission standards. The environmental tax for two-wheelers will increase from Rs 2,000 to Rs 4,000, while petrol light motor vehicles will see the tax rise from Rs 3,000 to Rs 6,000. Diesel light motor vehicles will face an increase from Rs 3,500 to Rs 7,000 annually.

Authorities are also expected to enforce stricter checks on vehicle fitness certificates to ensure that older vehicles operating on roads comply with safety and emission norms.

The budget also proposes relief for certain commercial vehicles by capping the motor vehicle tax on crane-mounted vehicles at Rs 30 lakh, easing the financial burden on operators.

The move builds on earlier scrappage rules that require government vehicles older than 15 years to be removed from service. The new proposal extends the focus to private vehicle owners as the state seeks to accelerate the transition to cleaner and more efficient transport.

Experts believe the combined approach of higher taxes on older vehicles and incentives for newer models could encourage motorists to switch to BS-6 compliant vehicles, helping improve air quality in urban areas.