Car buyers in Maharashtra might soon have to shell out more for CNG, LPG, and high-end electric vehicles, as the state government proposes a motor vehicle tax hike in its 2025-26 budget.
What’s Changing?
Deputy Chief Minister Ajit Pawar has proposed two key revisions to generate an estimated ₹150 crore in revenue for the state:
✅ CNG & LPG Cars – A 1% increase in motor vehicle tax for privately owned CNG and LPG cars. Currently, the tax rate stands at 7-9%, depending on the vehicle type and price.
✅ Luxury EVs (Above ₹30 Lakh) – A flat 6% motor vehicle tax will be applied to electric vehicles costing above ₹30 lakh.
✅ Affordable EVs (Under ₹30 Lakh) – No change! EVs priced under ₹30 lakh remain tax-free in Maharashtra.
Additionally, the maximum cap for motor vehicle tax is set to increase from ₹20 lakh to ₹30 lakh, potentially generating an extra ₹170 crore in revenue.
How Will This Impact Car Buyers?
🚗 CNG Buyers Pay More – Popular CNG models like the Tata Nexon CNG, Hyundai Grand i10 Nios CNG, and Maruti Fronx CNG will now cost slightly more due to the tax hike.
⚡ Luxury EVs Get Pricier – High-end EVs like the Kia EV6, Hyundai Ioniq 5, and premium offerings from brands like Mercedes-Benz, BMW, and Audi will see a price jump due to the new tax.
💰 Budget EVs Remain Attractive – The zero-tax policy for EVs under ₹30 lakh ensures that mass-market electric cars remain affordable, encouraging more people to make the switch to electric mobility.
What’s Next?
If approved, these tax changes will come into effect from the next financial year, impacting both new and prospective car buyers. While the move aims to boost state revenue, it could also dampen enthusiasm for green mobility among those considering CNG and high-end EVs.