https://indianmasterminds.com

ADVERTISEMENT
ADVERTISEMENT

Madhya Pradesh Govt Approves 50% Motor Vehicle Tax Exemption on New Vehicles with “Certificate of Deposit”

MP to Restore Direct Election of Municipal Presidents; Passes Nagar Palika (Amendment) Ordinance 2025
Indian Masterminds Stories

Bhopal: In a significant move to promote vehicle scrapping and reduce pollution, the Madhya Pradesh Council of Ministers, chaired by Chief Minister Dr. Mohan Yadav, has approved a 50 percent exemption in motor vehicle tax on new vehicles registered against the “Certificate of Deposit.” The decision targets old vehicles manufactured under Bharat Stage I (BS-I) and Bharat Stage II (BS-II) emission norms to encourage scrapping at registered facilities in the state.

Key Highlights of the Motor Vehicle Tax Exemption Scheme

Eligibility: The exemption applies to new non-transport and transport vehicles registered with the “Certificate of Deposit” issued for scrapped vehicles complying with BS-I or BS-II emission standards.

Financial Impact: Approximately 99,000 BS-I and BS-II vehicles are currently operational in Madhya Pradesh. The 50% exemption is expected to impose a financial burden of around ₹100 crore on the state government.

Previous Benefits: The state provided a rebate of nearly ₹17.05 crore on 1,563 new vehicle registrations in 2024-25 under similar schemes.

Certificate Validity: The “Certificate of Deposit” is valid for 3 years from the date of issue and can be electronically transferred on the designated trading platform.

Restriction: Tax exemption is only applicable if the Certificate of Deposit is issued by a registered Vehicle Scrapping Facility (RVSF) in Madhya Pradesh. Certificates issued in other states are not eligible.

Read also: World EV Day 2025: CM Mohan Yadav Pushes Madhya Pradesh to Become India’s EV Manufacturing Hub

Incentives & Conditions for Vehicle Owners

Motor vehicle tax exemption applies only when the new vehicle is registered under the name of the person holding the Certificate of Deposit.

The exemption is available on the purchase of a new vehicle of the same category as the scrapped one.

For vehicles with lifetime tax, a one-time 50% exemption will be granted.

Vehicles paying monthly, quarterly, or yearly taxes will get 50% tax exemption for 8 years.

The exemption does not apply to vehicles that are not registered for motor vehicle tax under the government’s notification dated September 8, 2022.

Central Support for Vehicle Scrapping Promotion

Madhya Pradesh is set to receive special assistance of ₹200 crore from the Ministry of Road Transport and Highways, Government of India, to boost the registered vehicle scrapping facilities in the state. This initiative aligns with the national objective to phase out older, polluting vehicles and promote cleaner, more fuel-efficient automobiles.

Approval of Madhya Pradesh Nagar Palika (Amendment) Ordinance 2025

Apart from the vehicle tax exemption, the Council of Ministers approved the Madhya Pradesh Nagar Palika (Amendment) Ordinance 2025. This ordinance reinstates the direct election of Presidents of Municipal Councils by voters in the upcoming 2027 urban local body elections.

Background: From 1999 to 2014, Presidents of urban bodies were elected directly by voters. Due to the COVID-19 pandemic, elections could not be held in 2019. In 2022, the election process switched to an indirect system.

Ordinance Objective: The amendment will restore the direct election system for Municipal Presidents, ensuring voters directly elect their representatives in 2027.

Ensuring Environmental Protection

The Madhya Pradesh government’s decision to provide motor vehicle tax exemptions and revive direct municipal elections demonstrates its commitment to sustainable urban development and clean environment goals. With the support from the Central Government and innovative policies, Madhya Pradesh aims to foster growth while ensuring environmental protection.

Read also: MP: CM Mohan Yadav to Transfer ₹175 Crore Assistance to Workers’ Families under Sambal Scheme In Bhopal


Indian Masterminds Stories
ADVERTISEMENT
ADVERTISEMENT
Related Stories
ADVERTISEMENT
ADVERTISEMENT
NEWS
Punjab CM Interactive Session at MGSIPA
Punjab Power Engineers Oppose IAS Appointments as PSPCL, PSTCL CMDs; Standoff Brews with Govt
Haryana Police Martyrs
Haryana Transfers 24 IPS and 5 HPS Officers; SPs of 8 Districts Replaced, Dr Arpit Jain Appointed SP Nuh
West bengal Government WB
West Bengal Govt Seeks EC Approval for Deployment of 12 IPS Officers to Fill Vacant Key Posts
ias  Rajendrakumar Patel
Who Is IAS Rajendrakumar Patel? Gujarat HC Seeks ED Reply on Bail Plea in Money Laundering Case
Assam Rifles Raising Day 2026
India Defence Exports Hit Record ₹38,424 Crore in FY 2025-26, Up 62.66%; DPSUs Lead with 151% Growth
Bihar govt resized
Bihar IAS-IPS Asset Disclosure 2025: Top Bureaucrats Reveal Wealth, Gold Holdings, Family Investments and Property Details
PFC logo resized Power Finance Corporation Ltd
PFC Independent Director Bhaskar Bhattacharya Resigns to Contest West Bengal Assembly Elections
NTPC
NTPC Mining Limited Achieves Record 44.16 MMT Coal Production in FY 2025-26, Expands Mining Capacity
ADVERTISEMENT
ADVERTISEMENT
Videos
Ajay Kumar Choudhary
Ajay Kumar Choudhary : The IPS Who Sees The World Like a Canvas
WhatsApp Image 2026-03-28 at 6.22
Nemesis of Law-breakers, in Cities & Forests
Ajay Choudhary IPS
From IIT to IPS: Ajay Choudhary on AI, Policing & the Future of Law Enforcement
ADVERTISEMENT
UPSC Stories
Deepanshu Jindal AIR 38
UPSC Success Story: How Deepanshu Jindal Cleared CSE 2025 with AIR 38
Deepanshu Jindal secured AIR 38 in UPSC CSE 2025 after overcoming personal loss, close misses, and multiple...
Neha Panchal UPPCS
From Motherhood to Merit List: How Neha Panchal Turned Eight Years of Struggle into Rank 1 in UPPCS-2024
Neha Panchal topped UPPCS 2024 after eight years of preparation, balancing motherhood, family responsibilities,...
Pulkit Jain UPSC CSE 2025
How Bhopal’s Pulkit Jain Overcame FOMO and Cracked UPSC
Pulkit Jain from Bhopal cracked UPSC in his fourth attempt after missing the final list by just 3 marks...
CSR NEWS
ews
DVK Foundation Launches Scholarship Programme for EWS Students at BGIS Vrindavan
BGIS Vrindavan Partners with DVK Foundation for EWS Student Scholarships
ECIL
ECIL Completes CSR Project by Handing Over Retaining Wall at Rastriya Vidya Kendra, Telangana
ECIL Enhances Student Safety and School Infrastructure in Medchal-Malkajgiri District Through Corporate...
ntpc
NTPC WR-I Launches ₹7.64 Crore CSR Project to Renovate IPD Blocks at N.M. Wadia Hospital, Solapur
Renovation of Buildings A, B, and Annex to Strengthen Healthcare Infrastructure, Improve Patient Care,...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Latest
Punjab CM Interactive Session at MGSIPA
Punjab Power Engineers Oppose IAS Appointments as PSPCL, PSTCL CMDs; Standoff Brews with Govt
Haryana Police Martyrs
Haryana Transfers 24 IPS and 5 HPS Officers; SPs of 8 Districts Replaced, Dr Arpit Jain Appointed SP Nuh
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Videos
Ajay Kumar Choudhary
WhatsApp Image 2026-03-28 at 6.22
Ajay Choudhary IPS
ADVERTISEMENT
ADVERTISEMENT