Maharashtra Proposes New Vehicle Tax Amendments

A bill amending the Maharashtra Motor Vehicles Act 1958 was introduced to potentially increase vehicle tax rates. It aims for additional revenue by raising tax on CNG, LPG, electric, and construction vehicles. The amendment also proposes new taxes on goods vehicles and compressors.

The Maharashtra government has tabled a bill seeking amendments to the Motor Vehicles Act 1958 during the assembly session on Wednesday. The proposed changes aim to increase the vehicle tax, thereby potentially boosting the state's revenue.

The Maharashtra Motor Vehicles Tax (Amendment) Act 2025 outlines plans to increase the maximum limit of one-time tax for motorcycles, tricycles, motorcars, and omni buses. Particularly, a 1 percent tax increase is set for CNG and LPG vehicles, as announced by Transport Minister Pratap Sarnaik.

Furthermore, the bill stipulates a 6 percent motor vehicle tax for electric vehicles priced above Rs 30 lakh and a 7 percent tax on construction vehicles and light goods vehicles. It also aims to levy a one-time 7 percent tax on vehicles used for transporting goods or materials, weighing up to 7,500 kg, at the point of registration.

(With inputs from agencies.)