Maharashtra's Fiscal Drive: New Tax Proposals Target Vehicles

The Maharashtra government has proposed new tax measures in its 2025-26 budget. Taxes include a 6% levy on electric vehicles over Rs 30 lakh and increased taxes on CNG and LPG vehicles. Additional taxes on construction and light goods vehicles aim to boost revenue by over Rs 900 crore.

The Maharashtra government unveiled a series of new tax proposals aimed at vehicles in its budget for the fiscal year 2025-26. Notably, the government plans to levy a 6% tax on electric vehicles priced above Rs 30 lakh, a significant move in the state's fiscal strategy.

Deputy Chief Minister Ajit Pawar, who presented the budget, also announced a 1% increase in the Motor Vehicle Tax on CNG and LPG vehicles. This decision is expected to generate additional revenue of approximately Rs 150 crore for the state government.

Moreover, Maharashtra will impose a 7% tax on vehicles used in construction as well as light goods vehicles carrying goods up to 7,500 kg, aiming to raise about Rs 805 crore. These taxes are part of a wider plan to increase state revenue by adjusting existing levies and introducing new ones.

(With inputs from agencies.)