Maharashtra Hikes One-Time Registration Tax for Luxury Cars and Commercial Vehicles
The Maharashtra government has implemented a revised one-time tax structure for luxury cars and commercial vehicles, effective July 1, 2025. The new tax regime affects petrol, diesel, CNG, and LNG vehicles, with high-end cars priced above Rs 20 lakh facing significantly higher taxes.
Key Changes in the Tax Structure
- The upper cap for one-time registration tax has been increased from Rs 20 lakh to Rs 30 lakh.
- Luxury cars priced above Rs 20 lakh will now attract steeper taxes, potentially adding over Rs 10 lakh to their cost.
- For cars registered under an individual’s name, the one-time tax structure has been divided into three slabs:
- Petrol cars under Rs 10 lakh attract 11% tax
- Those between Rs 10-20 lakh are charged 12%
- Anything above Rs 20 lakh is taxed at 13%
- Diesel cars are taxed at 13%, 14%, and 15% across the same price bands.
- Vehicles imported into the country or registered under a company name face a flat 20% one-time tax.
- CNG and LNG vehicle owners will face an additional 1% tax across all segments.
Impact on Commercial Vehicles
- Goods carriers, such as pickup trucks and construction vehicles, will now be taxed based on their ex-showroom price instead of gross vehicle weight.
- These vehicles will be taxed at 7% of their value. For example, a pickup truck priced at Rs 10 lakh will now cost the owner approximately Rs 70,000 in taxes, up from around Rs 20,000 previously.
Exemption for Electric Vehicles
- Electric vehicles remain exempt from the one-time registration tax.
- An earlier proposal to impose a 6% tax on EVs priced above Rs 30 lakh has been withdrawn.
The revised tax structure aims to increase revenue for the state while promoting electric vehicle adoption. Owners of luxury cars and commercial vehicles are advised to familiarize themselves with the new tax regime to avoid any unexpected costs.
