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Madhya Pradesh Clears Ordinance for Direct Local Body President Polls, 50% Vehicle Tax Rebate Linked to Scrappage

From 2027, local body presidents would again be chosen by voters under cabinet-backed changes approved today.

Overview

  • The cabinet approved a Municipality Amendment Ordinance to restore direct elections for Presidents of Municipal Councils and Nagar Parishads, reversing the indirect system used in 2022.
  • The government will introduce a bill in the Winter Assembly session to codify the changes, and removing a chairperson would require a no-confidence motion backed by at least three-fourths of councillors.
  • A 50% motor vehicle tax rebate was cleared for new vehicles bought against Certificates of Deposit issued for scrapping BS-I vehicles and specified BS-II medium and heavy vehicles under the RVSF framework.
  • The incentive applies only when the new vehicle is purchased in the certificate holder’s name, the certificate is valid for three years and electronically tradable, and the replacement is in the same vehicle category.
  • Eligibility is limited to vehicles registered in Madhya Pradesh using certificates from in-state RVSFs, certificates are cancelled after use by the RTO, prior 2022 concessions will not stack, and local reports estimate about 90,000 BS-I/BS-II vehicles in the state.