The Maharashtra Government has decided to grant the Motor Vehicle Tax waiver to freight and public transport vehicles for six months. In view of the business slowdown due to the pandemic, the State Cabinet on Wednesday decided to grant the waiver from April 1 to September 30.

In effect for fiscal 2020-21, there would be only 50 per cent annual tax recovery from vehicles carrying goods, tourist vehicles, excavators, private service vehicles, commercial campers vehicles, school buses and other annual tax-paying vehicles. The loss of revenue to the exchequer would be about ₹700 crore.

The State Government in a media statement said that the Union government declared a nationwide lockdown from March 25, which lasted till May 31. From June 1 under Mission Begins Again, the economic activities resumed. Public transport was badly affected during the lockdown period. Therefore, various transport associations had requested the State Government to grant tax exemption as a form of compensation.

In a separate development, the State Government also decided to reduce the stamp duty on Conveyance documents. From September 1 to December 31, the stamp duty has been reduced by 3 per cent. From January 1, 2021, to March 31, 2021, it has been reduced by 2 per cent, the statement said.

Related Topics