Maharashtra has announced a significant hike in motor vehicle (MV) tax, making the purchase of CNG, LNG, and high-end vehicles costlier from July 1. The revision, aligned with provisions outlined in the state budget earlier this year, is expected to generate additional revenue of nearly ₹800 crore in FY 2025-26.
According to a Times of India report, the one-time MV tax on all non-transport CNG/LPG vehicles will rise by 1 per cent, directly affecting both private buyers and auto dealers. For example, a CNG vehicle priced at ₹10 lakh will now attract a tax of ₹80,000, up from ₹70,000. A ₹20 lakh CNG car will see tax charges climb to ₹1.6 lakh from the current ₹1.4 lakh. Maharashtra currently has over 17 lakh CNG/LPG vehicles, including dual-fuel variants.
The state government has also raised the ceiling on MV tax from ₹20 lakh to ₹30 lakh, potentially increasing the maximum tax payable by ₹10 lakh on high-end vehicles. Additionally, light goods vehicles (LGVs) with a capacity of up to 7,500 kg will now be taxed at a flat rate of 7 per cent, which is projected to contribute ₹625 crore to the state’s coffers.
Revised tax rates for personal petrol and diesel vehicles remain unchanged:
- Petrol vehicles: 11 per cent (below ₹10 lakh), 12 per cent (₹10–20 lakh), 13 per cent (above ₹20 lakh)
- Diesel vehicles: 13 per cent (below ₹10 lakh), 14 per cent (₹10–20 lakh), 15 per cent (above ₹20 lakh)
- Imported/company-registered vehicles (petrol/diesel): 20 per cent flat rate
In a bid to promote sustainable mobility, electric vehicles (EVs) will continue to enjoy exemption from MV tax. The revised tax structure is aimed at boosting state revenue while encouraging a transition to cleaner, greener transportation.>
