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
Setu Commission Uttarakhand
Chief Secretary Anand Bardhan Reviews Setu Commission, Emphasises Policy Reforms and Hill Economy
Uttarakhand Tourism
Uttarakhand to Host International Travel Conclave in February, Nationwide Roadshows from January 10
Kanpur Lucknow Expressway startup corridor
Kanpur–Lucknow Expressway to Become Startup Corridor, Boosting Jobs and Innovation in UP
Praveen Prakash leadership lecture BARECA
Amaravati Development with Special Category Status Key to High-Paying Jobs, Says Former IAS Officer Praveen Prakash
IAS Service Meet 2025
IAS Service Meet 2025 in Bhopal Marks High-Energy Cyclothon, Boat Races and Cultural Celebrations
Uttar Pradesh Police (UP)_resized
UP Police Promotion: 10 IPS Officers of 2012 Batch Cleared for DIG Rank, District SSPs Likely to Change
IAS Tina Dabi
Barmer College Fee Protest: Students Call Collector Tina Dabi a ‘Reel Star’, Police Action Triggers Uproar
Prashasan Gaon Ki Ore
Good Governance Week 2025 Begins: Over 2.11 Lakh Grievances Resolved Under ‘Prashasan Gaon Ki Ore’
ADVERTISEMENT
ADVERTISEMENT
Videos
Shakeel Maqbool
When Numbers Guide Governance: The Story of ICAS Officer Shakeel Maqbool
Kamal Nayan
Listening To Music Ad Nauseum After Fighting Criminals In Jharkhand 
Kamal Nayan Choubey IPS
How Armed Maoist Guerillas Lost Battle Against The Government
ADVERTISEMENT
UPSC Stories
Dr Anjali Garg IAS UPSC Success Story
How Dr Anjali Garg Turned Medical Experience into Administrative Impact
Dr Anjali Garg’s journey from MBBS to IAS shows how medical experience, empathy, and public health exposure...
Mona Dangi MPPSC 23
“Hello, Mom… You Are Now the Mother of a Deputy Collector!" – The Inspiring Tale of Mona Dangi Who Gave Her Plans a Perfect End
From a small town in Ashoknagar, Mona Dangi achieved MPPSC Rank 12, becoming Deputy Collector, inspiring...
sjdhsdsjdhsjd
8 Years, 7 Attempts, 1 Dream: How Yogendra Nirmalkar Overcame Failures with Grit & Perseverance to Finally Crack CGPSC
Yogendra Nirmalkar cracked CGPSC after 8 years and 7 attempts, demonstrating remarkable grit, perseverance,...
Social Media
elephant rescue Karnataka
Heroic Karnataka Elephant Rescue: How a 28-Hour “Impossible Mission” Became a Triumph of Wildlife Care, IFS Parveen Kaswan Shares Video
A trapped elephant was rescued after 28 hours in Karnataka through a massive, expertly coordinated Forest...
IFS leaf-whistling viral video
IFS Officer Shares Video of Tiger Reserve Guide’s Leaf-Whistling Talent, Internet Tries to Guess the Tune
Jaldapara National Park Guide Shows Extraordinary Leaf-Whistling Skills, Goes Viral
Shalabh Sinha IPS Singing
Who is IPS Shalabh Sinha? The Bastar SP Whose Kishore Kumar Rendition Took Social Media by Storm
IPS officer Mr. Shalabh Sinha’s soulful performance of “Rimjhim Gire Sawan” at Dalpat Sagar goes viral,...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Latest
IPS Shubham Arya Buxar
From Chaos to Clicks: How SP Shubham Arya Digitised Buxar’s Malkhanas
Setu Commission Uttarakhand
Chief Secretary Anand Bardhan Reviews Setu Commission, Emphasises Policy Reforms and Hill Economy
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Videos
Shakeel Maqbool
Kamal Nayan
Kamal Nayan Choubey IPS
ADVERTISEMENT
ADVERTISEMENT