Haryana unveils tax breaks to accelerate shift to cleaner commercial vehicles

The Haryana government has announced sweeping motor vehicle tax exemptions for environment-friendly trucks and buses in the National Capital Region (NCR) districts of the state, as part of efforts to reduce vehicular pollution and accelerate the transition to cleaner commercial transport.

The state Cabinet has approved a 100% exemption from motor vehicle tax on the purchase of new BS-VI or higher-emission standard, electric (EV) and CNG trucks and buses for eligible beneficiaries replacing older commercial vehicles.

The incentives apply to owners replacing BS-IV or older trucks and buses registered in the NCR districts of Haryana under a new scheme supported by the National Capital Region Planning Board (NCRPB). The state expects the measure to accelerate fleet modernisation, improve air quality and reduce emissions from one of the largest sources of pollution in the Delhi-NCR region.

The move follows the Union Cabinet’s approval earlier this month of a Rs 9,585-crore, two-year programme to incentivise the replacement of BS-IV and older commercial vehicles across Delhi-NCR. The centrally-backed scheme combines interest subvention, fuel vouchers, state tax concessions and manufacturer discounts to encourage owners to switch to BS-VI-compliant or electric vehicles.

The Centre has repeatedly flagged heavy commercial vehicles as a disproportionate contributor to air pollution in the NCR despite accounting for a small share of the vehicle population. Studies cited by the government estimate that trucks and buses contribute around 36% of transport-related PM2. 5 emissions in the region, making fleet replacement a key element of its clean air strategy.