Maharashtra Proposes Amendment to Motor Vehicles Act for Increased Tax Revenue
Source: dairynews.today
The Maharashtra Motor Vehicles Tax Amendment Act 2025 aims to raise vehicle taxes to generate additional revenue, affecting motorcycles, CNG, LPG, and construction vehicles.
The Maharashtra government introduced a bill in the assembly on Wednesday to amend the Maharashtra Motor Vehicles Act 1958.
This amendment, tabled by Transport Minister Pratap Sarnaik, is designed to increase the maximum one-time tax for motorcycles, tricycles, motorcars, and omnibus. A significant part of the bill pertains to environmentally friendly vehicles, with a proposed 1% increase in tax for compressed natural gas (CNG) and liquified petrol gas (LPG) vehicles.
As outlined in the Maharashtra Budget for 2025-26, the bill further suggests a 6% motor vehicle tax on electric vehicles (EVs) priced above Rs 30 lakh, which includes a noteworthy provision for construction and light goods vehicles. It suggests a 7% tax on construction vehicles and light goods vehicles (LGVs).
The amendment introduces a one-time tax of 7% on vehicles like cranes, compressors, projectors, and excavators, specifically those used in construction, upon registration. Additionally, the same 7% tax applies to vehicles used for carrying goods or materials up to 7,500 kg. These measures are expected to contribute significantly to the state's revenue generation.
This amendment, tabled by Transport Minister Pratap Sarnaik, is designed to increase the maximum one-time tax for motorcycles, tricycles, motorcars, and omnibus. A significant part of the bill pertains to environmentally friendly vehicles, with a proposed 1% increase in tax for compressed natural gas (CNG) and liquified petrol gas (LPG) vehicles.
As outlined in the Maharashtra Budget for 2025-26, the bill further suggests a 6% motor vehicle tax on electric vehicles (EVs) priced above Rs 30 lakh, which includes a noteworthy provision for construction and light goods vehicles. It suggests a 7% tax on construction vehicles and light goods vehicles (LGVs).
The amendment introduces a one-time tax of 7% on vehicles like cranes, compressors, projectors, and excavators, specifically those used in construction, upon registration. Additionally, the same 7% tax applies to vehicles used for carrying goods or materials up to 7,500 kg. These measures are expected to contribute significantly to the state's revenue generation.
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