📷 Image: Wikimedia Commons / Dinesh P Purohit
Sarkari Yojana
Gujarat offers up to 50% tax rebate on new vehicles for owners who scrap old cars
✍️ The Times of India
🗓 02 Oct 2026, 02:32 AM
👁 10
The Gujarat government has launched a scheme that gives buyers up to a 50% reduction in registration and road taxes on new vehicles if they scrap their old ones.
Gujarat's transport department announced a new incentive scheme that provides a tax concession of up to 50% on the purchase of a new vehicle, provided the buyer disposes of an old vehicle through approved scrapping channels.
The concession covers registration fees, road tax and other levies normally payable at the time of sale, effectively halving the cost burden for eligible buyers.
Officials said the move is aimed at accelerating the phase‑out of ageing, polluting vehicles, improving road safety and giving a boost to the state's automobile market.
To qualify, owners must present proof that their previous vehicle, typically older than ten years, has been scrapped at a certified facility and must complete the purchase of the new vehicle within the stipulated time frame.
The scheme forms part of Gujarat's broader environmental and economic agenda and will be administered by the state transport authority, which will monitor compliance and issue the tax relief at the point of registration.
The concession covers registration fees, road tax and other levies normally payable at the time of sale, effectively halving the cost burden for eligible buyers.
Officials said the move is aimed at accelerating the phase‑out of ageing, polluting vehicles, improving road safety and giving a boost to the state's automobile market.
To qualify, owners must present proof that their previous vehicle, typically older than ten years, has been scrapped at a certified facility and must complete the purchase of the new vehicle within the stipulated time frame.
The scheme forms part of Gujarat's broader environmental and economic agenda and will be administered by the state transport authority, which will monitor compliance and issue the tax relief at the point of registration.