As per the report, buying a CNG, LNG, or high-end vehicle in Maharashtra will get more expensive from July 1, as the state transport department rolls out a hike in one-time motor vehicle (MV) tax, in line with the provisions announced in the state budget earlier this year.
The tax revision includes a 1% hike in one-time tax for all non-transport CNG/LPG vehicles, impacting both new car buyers and auto dealers. The government also increased the maximum limit for motor vehicle (MV) tax from Rs 20 lakh to Rs 30 lakh, a move expected to generate around Rs 170 crore in additional revenue for FY 2025-26.
For instance, if you purchase a CNG car worth Rs 10 lakh, the tax will now be Rs 80,000 instead of the current Rs 70,000. A Rs 20 lakh CNG vehicle will attract a revised tax of Rs 1.6 lakh, up from Rs 1.4 lakh. Currently, Maharashtra has over 17 lakh CNG/LPG vehicles, including dual-fuel variants.
Additionally, light goods vehicles (LGVs) with a capacity of up to 7,500 kg will now attract a lump sum MV tax at 7%, which is expected to bring in another Rs 625 crore in revenue.
The revised tax rates for personal petrol and diesel cars remain as follows:Petrol Vehicles:
Below Rs 10 lakh – 11%
Rs 10–20 lakh – 12%
Above Rs 20 lakh – 13%
Diesel Vehicles:
Below Rs 10 lakh – 13%
Rs 10–20 lakh – 14%
Above Rs 20 lakh – 15%
Imported or company-registered vehicles (petrol or diesel): Flat 20% tax, regardless of price.
However, there’s a silver lining for eco-conscious buyers: electric vehicles (EVs) will continue to be exempt from motor vehicle tax, in a push to promote greener transportation.
The revised tax slabs aim to boost state revenue while nudging citizens towards cleaner, electric mobility.
