‘One-time settlement scheme’ for light commercial vehicles

Lucknow: The state cabinet on Wednesday approved a ‘one-time settlement scheme’ for recovery of dues from light commercial vehicles owners, under which additional rebate of 35% will be given on the old tax dues of transport vehicles and 100% waiver on penalty. This proposed ‘one time settlement scheme’ will be valid only for two months from the date of issue of the notification.

A notification issued on Jan 30, 2026, implemented a one-time tax system for light commercial vehicles weighing up to 7.5 tons. There are over 29 lakh such vehicles in UP, of which over 8.5 lakh vehicles have outstanding dues totalling Rs 1,852.96 crore.

One-time penalty settlement schemes introduced in 2022-23 and 2024-25 for various categories of commercial vehicles only waived penalties. The amount recovered under these ‘one-time penalty’ settlement schemes has been extremely low, state govt said.