MP Cabinet approves 50% tax rebate on new vehicles purchase for owners scrapping BS-I, BS-II models

Bhopal (Madhya Pradesh) [India], September 9 (ANI): The Madhya Pradesh Cabinet chaired by Chief Minister Mohan Yadav on Tuesday approved a proposal to grant 50 per cent rebate in motor vehicle tax on new vehicle purchase against a "Certificate of Deposit" issued for scrapping BS-I and earlier emission standard vehicles, as well as medium/heavy goods and passenger vehicles manufactured under BS-II norms.
According to an official release, at present, there are about 99,000 BS-I and BS-II category vehicles on the road in the state. According to the approval, the motor vehicle tax rebate will be granted only when the new vehicle is purchased in the name of the same person, in whose name the Certificate of Deposit is held at the time. The Certificate of Deposit will serve as the essential and sufficient document to claim incentives and benefits on the purchase of a new vehicle. The validity of this certificate will be three years from the date of issue.
The rebate in motor vehicle tax will only be available if the new vehicle is registered in Madhya Pradesh against a Certificate of Deposit issued by an Registered Vehicle Scrapping Facility (RVSF) located within the state. If the certificate has been issued by an RVSF situated outside Madhya Pradesh, the tax rebate will not be applicable. The rebate will be provided only when the new vehicle belongs to the same category as the scrapped vehicle.
For vehicles with lifetime tax already deposited, a one-time 50% rebate in motor vehicle tax will be granted for both transport and non-transport categories. For vehicles on which tax is collected on a monthly/quarterly/annual basis, a 50% rebate will be given for up to eight years.
The concessions notified under the Transport Department's notification dated September 8, 2022 will not apply to vehicles availing tax rebate under this notification.
Additionally, the Cabinet approved the introduction of the Madhya Pradesh Municipality (Amendment) Ordinance 2025, to ensure that the elections for the post of President in Municipal Councils and Nagar Parishads in the state are conducted through direct voting by the electorate in the upcoming elections.
In Madhya Pradesh, the post of President in urban local bodies had been filled through direct elections by voters continuously from 1999 to 2014. Due to the COVID-19 pandemic, elections could not be held in the year 2019. Subsequently, in the 2022 urban local body elections, the post of President was filled indirectly. In the 2027 urban local body elections, however, the President will once again be elected directly by the voters.
In view of this sequence of events, approval has been granted to bring the Madhya Pradesh Municipality (Amendment) Ordinance 2025 to amend the relevant provisions of the Madhya Pradesh Municipalities Act, 1961. (ANI)