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Ahmedabad vehicle owners to get tax waivers, fine exemptions & incentives for scrapping old vehicles

by TLAteam March 29, 2025March 29, 2025
written by TLAteam March 29, 2025March 29, 2025
Ahmedabad vehicle owners to get tax waivers, fine exemptions & incentives for scrapping old vehicles

Ahmedabad’s vehicle owners can now benefit from a new state government initiative aimed at reducing pollution and promoting cleaner roads. The scheme offers waivers on pending taxes, penalties, and traffic violation fines, for those who scrap their ageing transport vehicles.

Business News

The transport department is focusing on phasing out polluting transport vehicles over eight years old through the Registration and Functions of Vehicle Scrapping Facility (RVSF). Deputy Director at the Commissioner of the Transport Office, stated, “This initiative encourages scrapping of ageing transport vehicles by offering exemptions on tax, penalties, and challans.”

Four circulars outline the benefits, including the compounding of offences under the Motor Vehicles Act, 1988, and full waivers on penalties, interest on outstanding taxes, and motor vehicle tax for eligible vehicles scrapped between 1 May 2025 and 30 April 2026.

Transport vehicles, which pay annual taxes, stand to gain the most. Private vehicle owners scrapping their cars will receive a 25% rebate, while transport vehicle owners will get 15%. Additional incentives will be available for those purchasing electric vehicles, reinforcing the state’s commitment to sustainability and road safety.

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