Deputy Chief Minister Ajit Pawar, who also holds the finance portfolio, tabled the budget and announced a 1 per cent hike in the Motor Vehicle Tax on CNG and LPG vehicles
Pic/Maharashtra CMO
Maharashtra Deputy Chief Minister and Finance Minister Ajit Pawar has announced a series of revisions in the state's motor vehicle tax structure, aiming to generate additional revenue of Rs 1,125 crore in the 2025-26 financial year. The proposed changes, which focus on different vehicle categories, were detailed in his latest budget presentation.
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The Maharashtra government on Monday proposed a 6 per cent tax on electric vehicles priced more than Rs 30 lakh in the budget for the fiscal 2025-26.
Deputy Chief Minister Ajit Pawar, who also holds the finance portfolio, tabled the budget and announced a 1 per cent hike in the Motor Vehicle Tax on CNG and LPG vehicles.
Increase in tax for CNG and LPG four-wheelers
The state government announced to hike in the motor vehicle tax on individual-owned, non-transport CNG and LPG four-wheelers by 1 per cent. Currently, these vehicles are taxed between 7 per cent and 9 per cent, depending on the vehicle type and price. This revision is expected to bring in an additional Rs 150 crore in revenue.
New tax on high-end electric vehicles
In a move that could impact luxury electric vehicle owners, the state government has proposed a 6 per cent motor vehicle tax on EVs priced above Rs 30 lakh. While electric vehicles have largely been exempt from taxation to promote sustainability, this new levy targets the premium segment.
Increase in the maximum tax cap
The government is also set to raise the maximum limit of motor vehicle tax from Rs 20 lakh to Rs 30 lakh, a move anticipated to contribute Rs 170 crore to the state's revenue in the next fiscal year.
Taxation on construction vehicles
Vehicles used in construction activities, including cranes, compressors, projectors, and excavators, will now be taxed at a lump sum rate of 7 per cent of their purchase price. This measure is projected to generate Rs 180 crore in additional revenue.
New tax on Light Goods Vehicles
A significant revenue boost is expected from the taxation of Light Goods Vehicles (LGVs) carrying loads up to 7,500 kg. The government has proposed a lump sum tax of 7 per cent on the price of these vehicles, with an estimated revenue gain of Rs 625 crore.
These tax revisions are part of the Maharashtra government's broader fiscal strategy to enhance revenue generation while ensuring sustainable infrastructure development. The proposed changes will be implemented in the upcoming financial year, pending legislative approval.
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