Patna: Bihar government will offer up to 50% discount in motor vehicle tax to owners who scrap their old vehicles through registered scrappers, Deputy Chief Minister Samrat Choudhary announced on August 13.
The incentive applies to all transport and non-transport vehicles built to Bharat Stage-I or earlier emission standards, and to medium and heavy motor vehicles meeting Bharat Stage-II standards. Owners must scrap their vehicles via authorised scrappers and submit a Certificate of Deposit to claim the tax relief.
Samrat said the policy aims to phase out ageing vehicles, curb pollution and reward responsible vehicle disposal. The state is also set to receive an additional Rs 50 crore under the Centre’s Capital Investment Special Assistance Programme for States 2025-26 (SASCI) by implementing the scrappage incentive on the VAHAN portal.
According to the deputy chief minister, the move will benefit both vehicle owners and the state government, with the central grant being directed towards infrastructure and capital development projects in Bihar.
