Bhopal (Madhya Pradesh): Vehicle owners in Madhya Pradesh have been given a major relief as the Transport Department has announced that old vehicles sent for scrapping at authorised centres will now get
a 90% waiver on pending tax penalties.
This offer will remain valid until March 2026. Owners will only need to pay 10% of the penalty amount before scrapping their vehicles.
Why this decision?
Officials explained that earlier, there were different slabs of penalty waiver depending on the vehicle’s age.
For example, vehicles older than 15 years got 90% relief, while those between 5 and 10 years got only 20%. Now, with the new rules, this age-based system has been scrapped, and all old vehicles will get equal benefit.
The change is expected to help bus operators and transporters the most, since thousands of trucks and buses are lying unused but still show up in the Transport Department’s records with heavy pending dues.
The earlier scrapping policy was launched in September 2021, but it failed to make much impact. Many large vehicle owners avoided scrapping because of high pending taxes and penalties.
The government hopes that with this new relaxation, more operators will clear their unused vehicles.
At present, Madhya Pradesh has lakhs of scrap-worthy vehicles, including over 2 lakh two-wheelers, more than 70,000 trucks, 15,000 buses, and nearly 90,000 cars.
Once a vehicle is scrapped at a government-approved center, the owner receives a scrapping certificate. This certificate must be submitted to the RTO to cancel registration and can also be used to get discounts while purchasing a new vehicle.
For non-transport vehicles like cars and two-wheelers, buyers can claim 25% tax rebate on the new purchase, while commercial vehicles get 15%.
Currently, authorised scrapping centers are operating in Bhopal, Indore, Jabalpur, and Gwalior.
