Haryana is set to replace approximately 92,000 trucks and 16,000 buses in the National Capital Region (NCR) that comply with BS-IV or earlier emission standards, as part of a major initiative to reduce vehicular pollution and improve air quality. The state government has announced a 100 percent exemption from Motor Vehicle Tax on the purchase of new vehicles meeting BS-VI or stricter emission norms, electric vehicles (EVs), or CNG-run vehicles.
Notification Issued for Tax Exemption
Additional Chief Secretary of the Transport Department, Dr. Raja Sekhar Vundru, issued a notification on June 24, exempting 100 percent Motor Vehicle (MV) Tax on the purchase of new BS-VI or stricter norms, electric vehicles, or CNG trucks and buses registered in the NCR districts of Haryana. Additionally, a 50 percent MV Tax exemption will be provided for the purchase of such used trucks and buses registered in the same districts. The exemption is valid for 10 years from the date of first registration of the vehicle.
The Haryana cabinet had earlier approved these exemptions in its meeting on June 22, aligning with the Centre's scheme approved by the Union cabinet on June 3.
Eligibility Criteria for Beneficiaries
To be eligible, the beneficiary must own a truck or bus registered in one of the 14 NCR districts of Haryana that is compliant with BS-IV or earlier emission norms. BS-III or older vehicles must be scrapped strictly at a Registered Vehicle Scrapping Facility (RVSF) functional in the state. However, BS-IV trucks and buses can be scrapped at an RVSF or sold outside the NCR in a non-National Clean Air Program (NCAP) city or area. Beneficiaries must purchase and register new or used replacement trucks and buses (BS-VI or stricter/EV/CNG) within the state's NCR districts.
Furthermore, the state government has exempted outstanding liability pending for more than one year on old BS-IV or prior-emission-norms-compliant trucks and buses participating in the scheme.
Why Trucks and Buses Are Targeted
According to The Energy and Resources Institute (TERI)'s August 2018 report, the transport sector contributes significantly to ambient air pollution in Delhi-NCR, accounting for 14% of PM2.5, 40% of carbon monoxide (CO), and 63% of nitrogen oxides (NOx) emissions. A single pre-BS heavy-duty vehicle emits as much as 14 BS-VI compliant vehicles, and even a BS-IV vehicle emits 2.7 times more than a BS-VI counterpart, according to a Press Information Bureau release on June 3.
The National Green Tribunal (NGT) in its order dated April 7, 2015, directed that diesel vehicles older than 10 years and petrol vehicles older than 15 years shall not ply on Delhi NCR roads. The Supreme Court upheld this in its order dated October 29, 2018. In the case of Container Corporation of India Ltd. vs. Ajay Khera (January 11, 2024), the Supreme Court directed the Union Government to formulate a policy to phase out heavy-duty diesel vehicles and replace them with BS VI vehicles. However, in an order dated August 12, 2025, the Supreme Court directed no coercive steps against owners of vehicles that are 10 years old (diesel) or 15 years old (petrol), but modified it on December 17, 2025, to allow exemption only for BS-IV and later emission norm vehicles.
Expected Financial Impact on Haryana
As per the minutes of the Expenditure Finance Committee (EFC) meeting of the Ministry of Finance dated April 30, Haryana will lose Rs 935.7 crore in tax concessions but gain Rs 1,999.6 crore in State Goods and Services Tax (SGST) revenue from the sale of new vehicles, resulting in a net gain of Rs 1,063.9 crore.
Centre's Scheme Details
Under the central scheme for replacement of old trucks and buses, the Centre will provide a 5% interest subvention on loans for new vehicles, monthly fuel vouchers of up to Rs 4,800 for five years for diesel/CNG vehicles, or a one-time benefit for EVs ranging from Rs 64,000 to Rs 2,56,000 depending on vehicle category. Manufacturers will offer an 8% discount on the ex-showroom price of a new vehicle. Vehicle owners who scrap their old vehicles but do not wish to purchase a replacement may trade their Certificates of Deposit (CoDs).
The scheme has a total financial outlay of Rs 9,585 crore, funded through the National Capital Region Planning Board (NCRPB) under the Ministry of Housing and Urban Affairs (MoHUA). It will be implemented by the Ministry of Road Transport and Highways (MoRTH) and the Ministry of Petroleum and Natural Gas (MoPNG), targeting replacement of 1.91 lakh old trucks and 16,329 old buses in Delhi-NCR.
