SHILLONG, June 11: 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.
The scheme was formally launched by Deputy Chief Minister and Transport Minister Snaiwbhalang Dhar 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 under a structured settlement framework.
The State government estimates that penalties accumulated under various transport-related heads have mounted to nearly ₹900 crore. Through the OTS scheme, vehicle owners will be given a one-time opportunity to regularise their records and settle dues with significant concessions.
Under the scheme, the government will waive 90% of penalties imposed for non-renewal of fitness certificates, while 80% of penalties related to Motor Vehicle (MV) Tax and Goods and Passenger Tax dues will be exempted.
According to departmental estimates, the total outstanding dues amount to nearly ₹1,100 crore, including approximately ₹900 crore in fitness certificate-related penalties. The Transport Department estimates that if vehicle owners avail themselves of the scheme and clear their dues, the Government could generate revenues of approximately ₹180–200 crore.
Highlighting the scale of pending cases, Dhar said, “From motor vehicle taxes almost 65,000 Approximately and good and passenger tax almost 12,642 and for penalties which is for fitness certificate is more than 57,000 vehicles, it’s 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. It also aims to encourage 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 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.
Meanwhile, responding to queries regarding the proposed Vehicle Scrappage Policy, Dhar stated that the Government is currently in the process of preparing the necessary systems and mechanisms for its implementation. The policy will be rolled out once all required arrangements are in place.
