Maharashtra Hikes One-Time Vehicle Tax: Premium Cars, CNG Vehicles to Cost More
High-end cars, CNG/LNG-powered vehicles, and commercial goods carriers in Maharashtra have become more expensive from Tuesday, July 01, 2025, as the state government revises its one-time vehicle tax structure. The new policy increases the tax cap from ₹20 lakh to ₹30 lakh, significantly impacting luxury car buyers and businesses relying on transport vehicles.
Revised Tax Structure for Petrol & Diesel Cars
Under the new rules, petrol cars registered under an individual’s name will be taxed as follows:
- 11% for vehicles priced below ₹10 lakh
- 12% for those between ₹10 lakh and ₹20 lakh
- 13% for cars above ₹20 lakh
For diesel cars, the tax rates are higher:
- 13% for vehicles below ₹10 lakh
- 14% for those between ₹10 lakh and ₹20 lakh
- 15% for cars priced above ₹20 lakh
Luxury petrol and diesel cars with ex-showroom prices around ₹1.33 crore and ₹1.54 crore, respectively, will now attract over ₹20 lakh in one-time tax.
Higher Taxes for CNG/LNG Vehicles & Commercial Transport
CNG and LNG-powered vehicles will see a 1% increase in one-time tax across all price brackets. Meanwhile, commercial goods carriers—including pickup trucks, tempos (GVW up to 7,500 kg), and construction vehicles like cranes and compressors—will now be taxed at 7% of their price, replacing the earlier weight-based system.
A senior RTO official explained, “Earlier, a ₹10 lakh pickup truck paid around ₹20,000 in tax based on weight. Now, it will cost ₹70,000—a significant jump.” Previously, goods vehicles with gross weights between 750 kg and 7,500 kg were taxed between ₹8,400 and ₹37,800.
Imported & Company-Registered Vehicles Face Flat 20% Tax
Imported vehicles or those registered under a company name will attract a flat 20% one-time tax, regardless of fuel type or price.
Electric Vehicles Continue to Enjoy Tax Exemptions
In a relief for EV buyers, the Maharashtra government has retained tax exemptions for electric vehicles. An earlier proposal to impose a 6% tax on EVs priced above ₹30 lakh was withdrawn, keeping EVs tax-free for now.
Key Takeaways:
- Luxury car buyers will pay significantly higher taxes.
- CNG/LNG vehicles become slightly costlier.
- Commercial vehicles shift from weight-based to price-based taxation.
- EVs remain exempt from one-time tax.
With these changes, Maharashtra aims to boost revenue while encouraging eco-friendly transportation. However, the move is expected to impact automobile sales, especially in the premium and commercial segments.
