Maharashtra Budget Includes Tax on Premium Electric Vehicles and CNG Vehicle Hikes
Mumbai: The Maharashtra government has unveiled several new tax proposals within its budget for the fiscal year 2025-26. These measures include a new tax on high-end electric vehicles (EVs) and increased taxes for vehicles using compressed natural gas (CNG) and liquefied petroleum gas (LPG).
The Maharashtra state government has proposed new taxes and hikes in its budget for the fiscal year 2025-26.
Specifically, the budget proposes a 6% tax on electric vehicles with a price tag exceeding Rs 30 lakh. The proposal was presented by Deputy Chief Minister Ajit Pawar, who also manages the finance portfolio. This tax is intended to generate more revenue for the state by including high-end EVs in the tax net.
In addition to the EV tax, the state plans to increase the Motor Vehicle Tax by 1% for privately owned CNG and LPG four-wheelers. This change is projected to bring in an extra Rs 150 crore for the state’s treasury during the next financial year.
The budget also outlines a 7% tax on vehicles used in construction activities, which is expected to generate roughly Rs 180 crore in revenue. Furthermore, light goods vehicles (LGVs) capable of carrying up to 7,500 kg will now be subjected to a 7% tax, potentially adding an estimated Rs 625 crore.
To broaden its tax base, the Maharashtra government has also increased the maximum threshold for the Motor Vehicle Tax from Rs 20 lakh to Rs 30 lakh, a move anticipated to generate Rs 170 crore in revenue.
The new tax policies are expected to affect buyers of premium EVs, commercial transport operators and those in the construction sector.
(Inputs from PTI)
