Gujarat Offers Up To 50% Motor Vehicle Tax Concession For Scrapping Old Vehicles

The Gujarat government has announced up to 50 per cent concession in Motor Vehicle Tax for vehicle owners who scrap eligible old vehicles and purchase new ones. The benefit is linked to the Certificate of Deposit (COD) issued following authorised scrapping and will be available at the time of registration of a new vehicle.

The concession applies to vehicles manufactured under Bharat Stage-I or earlier emission standards, as well as medium and heavy commercial vehicles made under BS-II standards. Owners must produce the COD received after scrapping an eligible vehicle through an authorised facility during new vehicle registration to claim the tax benefit.

The scheme's deadline is March 31, 2027. Only CODs issued on or before this date will qualify for the concession. The measure aims to incentivise the scrapping and replacement of older, high-emission vehicles with newer models.