One-time settlement scheme to clear motor vehicle tax arrears

The State government has announced a ‘one-time settlement’ scheme to clear motor vehicle tax arrears in the State. Vehicle owners with tax arrears spanning four years or more up to March 31, 2026, are eligible to benefit from the scheme. The deadline to avail of this offer is March 31, 2027. An official notification regarding this has been issued. Under the scheme, owners of non-transport vehicles are required to pay 40% of their total tax arrears (including fines and interest) accumulated over the four years ending March 31, 2026. For transport vehicles, the required payment is 30% of the total tax arrears (including fines and interest) for the same four-year period.

Those who opt for this scheme will be granted exemptions from the ‘Green Tax,’ fees related to the production of registration certificates, and contributions to the Motor Transport Workers’ Welfare Fund. Individuals currently facing revenue recovery proceedings are also eligible to participate; such recovery actions will be terminated upon payment of the outstanding tax arrears along with the applicable collection charges. Furthermore, for vehicles that have been stolen, scrapped, destroyed, or rendered unusable, future tax liabilities will be waived. An application must be submitted along with the necessary documents. The concession will be granted only after verification by the authorities, said a statement from the office of the Transport Minister