📷 Image: Wikimedia Commons / Dinesh P Purohit
Automobile
Gujarat offers up to 50% tax break on new vehicles for owners who scrap old cars
✍️ ANI News
🗓 01 Oct 2026, 02:36 PM
👁 10
The Gujarat government has announced a scheme that will waive up to half of the motor vehicle tax for buyers who scrap their old vehicles and purchase new ones.
The state government of Gujarat unveiled a new incentive programme aimed at encouraging vehicle owners to replace ageing automobiles with newer, cleaner models. Under the scheme, motorists who surrender an old vehicle for scrapping and buy a new one will be eligible for a motor vehicle tax concession of up to 50 percent.
The concession applies to the registration tax normally levied on the purchase of a new vehicle. To qualify, owners must provide proof that the previous vehicle has been permanently deregistered and handed over to an authorized scrapping facility. The exact percentage of relief will depend on the age and condition of the scrapped vehicle, with older, more polluting cars attracting the higher discount.
State officials said the measure is expected to boost the turnover of the automobile sector while also supporting environmental goals by removing older, less efficient vehicles from the roads. The scheme will be rolled out from the upcoming fiscal quarter, and details on application procedures are being posted on the Gujarat Transport Department’s website.
The concession applies to the registration tax normally levied on the purchase of a new vehicle. To qualify, owners must provide proof that the previous vehicle has been permanently deregistered and handed over to an authorized scrapping facility. The exact percentage of relief will depend on the age and condition of the scrapped vehicle, with older, more polluting cars attracting the higher discount.
State officials said the measure is expected to boost the turnover of the automobile sector while also supporting environmental goals by removing older, less efficient vehicles from the roads. The scheme will be rolled out from the upcoming fiscal quarter, and details on application procedures are being posted on the Gujarat Transport Department’s website.