Maharashtra legislature clears bill to increase vehicle tax

The Maharashtra legislature on Friday cleared the Maharashtra Motor Vehicles Tax (Amendment) Bill 2025 which is aimed at increasing vehicle tax and potentially generating additional revenue.

The Maharashtra Motor Vehicles Tax (Amendment) Bill 2025 was passed in the legislative council on Friday. It was earlier cleared by the legislative assembly. The bill amends the Motor Vehicles Act 1958.

Although the bill was passed in the council, opposition members raised concerns over taxing electric vehicles (EVs).

MLCs Satyajeet Tambe (Independent) and Anil Parab (Shiv Sena UBT) said the bill defies the logic of encouraging people to reduce emissions by switching to EVs.

Tambe, who opposed the bill, said by taxing even EVs over ₹30 lakh, the move will hurt the middle class.

Replying to the debate, Transport Minister Pratap Sarnaik said the bill will not hurt the middle class as the move aims to tax vehicles above ₹30 lakh and such vehicles are not generally used by the middle class.

He said the state is also planning to bring a parking policy.

The bill aims to increase the maximum limit of one-time tax for motorcycles, tricycles, motorcars and omnibuses. The tax on compressed natural gas (CNG) or liquefied petrol gas (LPG) vehicles will be increased by 1%.

The Maharashtra Budget 2025-26 had proposed a 6% motor vehicle tax on electric vehicles (EVs) priced above ₹30 lakh, a 1% hike in tax for CNG and LPG vehicles, and a 7% tax on construction vehicles and light goods vehicles (LGVs).

The amendment bill proposes to levy a one-time tax of 7% of the cost of vehicles used for construction work such as cranes, compressors, projectors, and excavators at the time of their registration.

The amendment also includes a one-time 7% tax levy on vehicles used for the carriage of goods or materials up to 7,500 kilograms.