Gandhinagar, October 1, 2026 (Yes Punjab News)
The Gujarat government has announced a motor vehicle tax concession of up to 50 per cent for owners who scrap eligible old vehicles through authorised facilities and purchase new ones.
According to a notification issued by the state’s Ports and Transport Department, the concession will be available at the time of registration of a new vehicle upon submission of a Certificate of Deposit (COD) issued after the authorised scrapping of an eligible vehicle.
The benefit will apply to CODs issued on or before March 31, 2027. Eligible vehicles include those manufactured under Bharat Stage-I (BS-I) and earlier emission standards, as well as medium and heavy goods and passenger vehicles manufactured under BS-II standards.
Under the provision, vehicle owners must scrap their old vehicles at an authorised facility and obtain a COD. The certificate can then be submitted when registering a replacement vehicle to claim the applicable tax concession, in accordance with prescribed rules.
The government has retained the existing method of calculating Motor Vehicle Tax, with the concession applied under the notified provisions. The measure links the scrapping of older, higher-emission vehicles with a financial incentive to purchase replacements.
The concession is particularly relevant to owners of eligible old commercial vehicles, who can claim the benefit when registering a new vehicle after completing the required scrapping process.
The department has also clarified that a COD can be used only once to claim the concession. If a tax benefit has already been availed against a certificate issued for a particular scrapped vehicle, it cannot be used to claim another concession.
Vehicle owners must complete the eligible scrapping process and obtain their COD by the specified deadline to qualify for the benefit.
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