Meghalaya Launches One-Time Settlement Scheme to Clear Vehicle Tax Debt

Shillong: The Meghalaya government has launched a One-Time Settlement (OTS) scheme to provide financial relief to commercial vehicle owners struggling with mounting tax and document renewal penalties. Approved by the state Cabinet, the initiative offers a 90 per cent waiver on late fees for fitness certificates and an 80 per cent reduction on overdue motor vehicle and goods passenger taxes.

Chief Minister Conrad K Sangma explained that the previous penalty structure had become unsustainable for many operators. While a standard annual fitness fee is roughly Rs 1,200, daily late penalties of Rs 50 pushed annual costs to nearly Rs 18,000. For those who skipped renewals over several years, the total state-wide burden had climbed to an estimated Rs 900 crore. The new scheme aims to bring these inactive vehicles back into the legal transport network by making outstanding dues affordable.

The move earned praise from the Joint Action Committee, which represents truck owners in East Jaintia Hills and Jaintia Hills. Spokesperson Soomeyo Sayoo described the relief as a long-awaited solution for taxi and truck operators. Similarly, the Meghalaya International Export Chamber of Commerce highlighted that recent downturns in coal and limestone trade, combined with cross-border issues with Bangladesh, had left many drivers unable to pay their debts.

Deputy Chief Minister and Transport Minister Sniawbhalang Dhar noted that the Cabinet acted after persistent appeals from transporters facing economic hardship. By allowing owners to settle their arrears at a fraction of the cost, the government hopes to protect local livelihoods and restore stability to the regional transport sector.

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