The film, a tribute to legendary sprinter Milkha Singh, got the approval from chief minister Bhupinder Singh Hooda to make it tax free.
"There was a sole reason behind getting the film tax free - I want this film to reach every nook and corner of the country. This film is a family watch and is made to inspire the youth," Mehra said in a statement.
"I do not want people to wait for it come onto cable television and then be able to view it, but instead fit into the monthly budget of ever household so that they can get the complete experience of the legend's life journey, hardships and achievements in the theatre," he added.
"Bhaag Milkha Bhaag" released July 12. It stars actor Farhan Akhtar playing the lead role, with actors like Sonam Kapoor and Divya Dutta delivering powerful performances.
The movie has been lauded by critics and audiences alike, and it is running successfully at the box office.