The Maharashtra Government tabled the state budget for the 2025-26 financial year on Monday, March 10. In addition to detailing proposed investments in the state’s development, the new budget also proposed some revisions to the taxation on passenger cars and commercial vehicles in the state.
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EVs priced over Rs 30 lakh to attract a 6 per cent motor vehicle tax.
The state government budget proposed the introduction of a 6 per cent motor vehicle tax on EVs priced at over Rs 30 lakh. Previously, all EVs in the state were exempt from paying RTO charges and road tax in the state. This has been accompanied by the proposal to hike the maximum chargeable vehicle tax from a maximum of Rs 20 lakh to Rs 30 lakh.
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CNG and LPG passenger cars are also expected to get dearer in the new financial year with a proposal to hike the vehicle tax rate by 1 per cent. Presently, CNG and LPG passenger cars are taxed at a rate of between 7 and 9 per cent. Do note that the proposal for a tax rate hike will affect ‘individually-owned non-transport four-wheelers’ only.
Tax on privately-owned non-transport CNG vehicles to be hiked by 1 per cent.
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The state government has also proposed the introduction of a new 7 per cent motor vehicle tax on a lump sum basis on construction vehicles such as cranes, excavators and more. A similar rate has also been proposed for light goods vehicles ‘carrying goods up to 7500 kg.’
