Maharashtra To Double Green Tax On Old Vehicles, BS3 Owners May Get Up To 30% Tax Benefits

Older BS3 vehicles may soon receive up to a 30% tax concession in Maharashtra, as the state government proposes a new vehicle scrappage policy aimed at reducing pollution and phasing out ageing vehicles. The proposal also includes higher renewal charges for older vehicles.

Maharashtra Proposes New Vehicle Scrappage Policy

The Maharashtra government is planning to introduce this scheme to reduce the number of older vehicles operating across the state. As part of the proposal, the green tax imposed on BS3 vehicles will be doubled.

The policy aims to reduce the use of outdated private vehicles while offering incentives for owners who choose to scrap them. A green tax will apply to vehicles older than 15 years, along with stricter renewal and fitness certification requirements.

Maharashtra

Vehicle

Green Tax

Two Wheelers 2000-4000
Petrol Cars 3000-6000
Diesel Cars 3500-7000

For two-wheelers, the green tax could range between ₹2,000 and ₹4,000. Petrol-powered cars may attract a tax of around ₹3,000 to ₹6,000, while diesel vehicles could see charges ranging from ₹3,500 to ₹7,000.

Vehicle owners who scrap their older vehicles and purchase new ones will benefit from concessions under the Motor Vehicle Tax. For BS4 vehicles, the scrappage concession could be around 16%, while for BS3 vehicles, the benefit may go up to 30%.

This allows consumers to enjoy tax benefits when purchasing new vehicles, thereby lowering the overall cost. The initiative is designed to strengthen the vehicle scrappage program across the state and gradually phase out older vehicles from the roads.

Maharashtra

Maharashtra Chief Minister Devendra Fadnavis announced this new policy during the recent state budget session. The broader goal of these measures is to discourage the use of inefficient & high-emission vehicles, improve overall air quality, and modernise the automotive sector.

India already has a national vehicle scrappage policy in place, and the Maharashtra government's proposal is part of the broader effort to implement and strengthen that framework at the state level. The move is expected to accelerate the replacement of older vehicles with cleaner alternatives, including more fuel-efficient ICE models, CNGs, and electric vehicles.

Article Published On: Sunday, March 8, 2026, 9:24 [IST]
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