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Automobile
Gujarat Announces 50% Tax Break for Vehicles Scrapped Under New Scheme
✍️ The Economic Times
🗓 03 Oct 2026, 02:16 AM
👁 14
The Gujarat government has approved a 50% concession on vehicle tax to encourage owners to scrap old vehicles, aiming to reduce congestion and pollution.
Gujarat's state cabinet gave the nod to a new policy that halves the tax payable on vehicles that are permanently taken off the road for scrapping. Under the scheme, owners who surrender eligible two- and four-wheelers will receive a 50% reduction on the road tax that would otherwise be due for the next registration period.
The move is part of the state's broader effort to curb traffic congestion, lower emissions, and promote a cleaner urban environment. Officials say that incentivising scrappage will accelerate the removal of ageing, polluting vehicles from streets and free up valuable road space.
The concession will apply to vehicles meeting age and condition criteria set by the transport department, and owners must present proof of scrappage from authorized dismantlers. The government expects the scheme to generate a significant uptick in voluntary scrappage, contributing to its targets for air quality improvement and sustainable mobility.
The move is part of the state's broader effort to curb traffic congestion, lower emissions, and promote a cleaner urban environment. Officials say that incentivising scrappage will accelerate the removal of ageing, polluting vehicles from streets and free up valuable road space.
The concession will apply to vehicles meeting age and condition criteria set by the transport department, and owners must present proof of scrappage from authorized dismantlers. The government expects the scheme to generate a significant uptick in voluntary scrappage, contributing to its targets for air quality improvement and sustainable mobility.