Maharashtra's Vehicle Tax Bill: A Drive Towards Revenue

The Maharashtra Motor Vehicles Tax (Amendment) Bill 2025 has passed, aiming to boost revenue by increasing vehicle taxes. The bill taxes expensive vehicles, including EVs, leading to opposition from some members. Proponents argue it targets wealthier individuals, not the middle class.

The Maharashtra legislature has given the green light to the Maharashtra Motor Vehicles Tax (Amendment) Bill 2025, aiming to boost state revenue by revising vehicle taxes.

This new legislation, which amends the Motor Vehicles Act of 1958, was cleared in the legislative council following its earlier approval by the legislative assembly. However, it has faced criticism, particularly for taxing electric vehicles (EVs). Opposition MLCs questioned how this bill aligns with efforts to reduce emissions through EV adoption.

Transport Minister Pratap Sarnaik defended the bill by highlighting that it primarily affects high-value vehicles, asserting that the middle class will remain largely unaffected. The amendment also proposes higher taxes on CNG, LPG, and construction vehicles.

(With inputs from agencies.)