1.3 lakh commercial vehicles with massive penalty waivers
CORRESPONDENT
SHILLONG: In a major relief measure for the transport sector, the Meghalaya government on Thursday launched the One-Time Settlement (OTS) Scheme, 2026, aimed at addressing long-pending tax and penalty dues involving almost 65,000 vehicles under Motor Vehicle Tax, 12,642 vehicles under Goods and Passenger Tax, and more than 57,000 vehicles linked to fitness certificate penalties. The initiative is expected to benefit over 1.3 lakh commercial vehicles across the state by offering substantial waivers on accumulated penalties.
Deputy Chief Minister and Transport Minister Sniawbhalang Dhar formally launched the scheme at the Secretariat in Shillong. The initiative is designed to ease the financial burden on transport operators while enabling the government to recover long-standing arrears through a structured settlement framework.
The state government estimates that penalties accumulated under various transport-related heads have mounted to nearly Rs 900 crore. Through the OTS scheme, vehicle owners will receive a one-time opportunity to regularise their records and settle dues with significant concessions.
Under the scheme, the government will waive 90 per cent of penalties imposed for non-renewal of fitness certificates, while it will exempt 80 per cent of penalties related to Motor Vehicle (MV) Tax and Goods and Passenger Tax dues.
Highlighting the scale of pending cases, Dhar said, "From motor vehicle taxes, approximately 65,000 vehicles are involved, and under Goods and Passenger Tax, almost 12,642 vehicles are involved. For penalties related to fitness certificates, the number exceeds 57,000 vehicles. It's a huge number."
The figures underline the extent of accumulated non-compliance in the transport sector over the years, placing a substantial burden on both vehicle owners and the Transport Department. Officials noted that, in many cases, penalties had escalated far beyond the original tax liabilities, making regularisation difficult for operators.
The government expects the OTS scheme to provide immediate financial relief, particularly to small and medium commercial vehicle owners, while simultaneously improving compliance levels across the sector. The scheme also aims to encourage the timely renewal of fitness certificates and strengthen regulatory enforcement mechanisms.
Officials said the scheme has been framed as a pragmatic intervention that balances revenue recovery with the ground-level challenges faced by transporters. By offering steep penalty reductions, the government hopes to bring a large number of defaulters back into the formal compliance system.
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