Nagpur: In a decisive move aimed at curbing vehicular pollution and encouraging cleaner transport, the Maharashtra Government has proposed a 100 per cent hike in the environmental (green) tax on older private vehicles. The announcement was made by Chief Minister Devendra Fadnavis while presenting the Maharashtra Budget 2026, outlining a strategy to gradually phase out ageing and highly polluting vehicles from the State’s roads.
The proposed measure primarily targets vehicles that comply with BS4 emission norms and older standards, which are considered significantly more polluting and fuel-inefficient compared to modern vehicles. At the same time, the Government has introduced tax incentives for vehicle owners willing to scrap their old vehicles and shift to newer models, signalling a two-pronged approach of deterrence and encouragement.
Gold Rate
Mar 7th, 2026 - Time 11.45Hrs
Green tax to double for older vehicles
Under the proposal, the green tax on vehicles older than 15 years will see a substantial increase across major categories. The tax on two-wheelers will double from the existing Rs 2,000 to Rs 4,000. For petrol light motor vehicles (LMVs), the green tax will rise from Rs 3,000 to Rs 6,000, while diesel LMVs will attract a tax of Rs 7,000, up from the current Rs 3,500.
Officials say the move is intended to discourage the continued use of ageing vehicles that contribute heavily to urban pollution.
Stricter enforcement measures planned
Along with the tax hike, authorities are also planning stricter enforcement of environmental compliance. Transport authorities will intensify checks to ensure that older vehicles have paid the required green tax and possess valid fitness certificates, which are mandatory for vehicles operating beyond a certain age.
Officials believe stronger monitoring will help plug loopholes that currently allow several outdated vehicles to continue operating without proper compliance.
Incentives for scrapping old vehicles
In order to encourage voluntary replacement of outdated vehicles, the Government has proposed substantial tax concessions for owners who choose to scrap their old vehicles and purchase new ones.
Vehicle owners scrapping BS4-compliant vehicles or newer will be eligible for a 16 per cent reduction in motor vehicle tax when purchasing a new vehicle. The benefit will be even higher for older vehicles, those scrapping BS3 or earlier models will receive up to 30 per cent tax concession on the purchase of a new vehicle.
According to the Chief Minister, the policy aims to strike a balance between discouraging highly polluting vehicles and incentivising the adoption of cleaner, more efficient models.
“These steps are intended to discourage the use of fuel-inefficient and polluting vehicles, accelerate fleet modernisation, and improve air quality across the State,” Fadnavis said during his budget speech.
The proposal is part of Maharashtra’s broader environmental strategy to reduce vehicular emissions and promote a cleaner and more sustainable transportation ecosystem in rapidly growing urban centres such as Nagpur, Pune, and Mumbai.
