Maharashtra hikes taxes on cars and vehicles by up to Rs 10 lakh. Here’s how much you have to pay now

Maharashtra has hiked taxes on vehicles by up to Rs 10 lakh, according to a report in the Times of India.

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.