Haryana announces 100% tax exemption for clean trucks, buses in NCR

In a significant step aimed at curbing vehicular emissions and encouraging the adoption of cleaner transport systems, the Haryana Government has announced major exemptions in Motor Vehicle (MV) tax for the purchase of environment-friendly trucks and buses across the National Capital Region (NCR) districts of the state.

According to an official notification issued by the Transport Department on June 24, the state government will grant a 100 per cent exemption on Motor Vehicle Tax for the purchase of new BS-VI compliant vehicles, including electric vehicles (EVs), CNG-run vehicles, and other stricter emission-standard-compliant trucks and buses. In addition to this, a 50 per cent exemption in MV tax will also be applicable on the purchase of used vehicles that meet the same emission norms.

The exemption will remain valid for a period of 10 years from the date of first registration of the eligible vehicle, providing long-term financial relief and incentives for fleet operators transitioning to cleaner mobility solutions. To avail the benefits under the scheme, applicants must own a transport truck or bus registered within Haryana's NCR districts, and the vehicle being replaced must comply with BS-IV or older emission standards. The policy further mandates the proper scrapping or disposal of older vehicles. BS-III and older category trucks and buses are required to be scrapped at a Registered Vehicle Scrapping Facility (RVSF) operating within the state. Meanwhile, BS-IV vehicles may either be scrapped at an RVSF or sold outside the NCR region in areas not covered under the National Clean Air Programme (NCAP).

The replacement vehicle, whether new or pre-owned, must be purchased and registered within Haryana's NCR districts and must strictly comply with BS-VI, electric, CNG, or higher emission standards, as specified in the notification. The notification also extends relief to owners of older commercial vehicles by waiving outstanding Motor Vehicle Tax liabilities that have remained pending for more than one year in respect of BS-IV or older trucks and buses registered in the NCR districts of the state. The initiative is expected to significantly accelerate the phase-out of older, high-emission commercial vehicles and promote their replacement with cleaner alternatives. The move, they added, will contribute to improving air quality levels in the NCR region while aligning with the state's broader environmental and sustainability objectives.