The Government of Madhya Pradesh on October 10, 2025, issued the notification regarding the 50% exemption of motor vehicle tax on new transport vehicles and new non-transport vehicles, which are to be registered against "Certificate of Deposit".
The following has been stated namely: -
• The Madhya Pradesh Government grants 50% motor vehicle tax exemption on new transport and non-transport vehicles purchased against a valid Certificate of Deposit (CoD) issued under the 2021 Vehicle Scrapping Rules, applicable to BS-I and earlier vehicles, and certain BS-II category vehicles.
• The exemption applies only when the new vehicle is purchased in the name of the CoD holder; the certificate is valid for 3 years and is electronically tradeable until used, after which it is marked cancelled in the VAHAN database.
• Tax exemption is allowed only if the CoD is issued by an RVSF located in Madhya Pradesh, and only if the new vehicle is of the same class as the scrapped one.
• For vehicles with lifetime tax, a one-time 50% exemption is available; for vehicles taxed monthly/quarterly/annually, the 50% exemption applies for up to 8 years.
• Vehicles that already availed tax exemption under the earlier notification dated September 09, 2022 cannot claim the exemption again under this new notification.
[Notification No. 3623/973078/2022/VII]
