Maharashtra Budget Proposes Tax Incentives for Vehicle Scrapping and Raises Environmental Tax

Maharashtra's 2026-27 budget introduces tax incentives to encourage scrapping older vehicles and purchasing new ones, offering 16% and 30% motor vehicle tax concessions for vehicles meeting BS-4 and BS-3 or below emission norms, respectively. The government also doubles environmental tax on older private vehicles with BS-4 and below standards to address pollution. Additionally, a cap of Rs 30 lakh is proposed on motor vehicle tax for crane-mounted vehicles. These measures aim to modernize the vehicle fleet and improve air quality.