The Maharashtra government has made a big announcement regarding vehicle tax in the state from July 1, 2025. In the new tax regime, tax rates have been increased, especially on luxury vehicles, CNG and LNG vehicles and commercial transport vehicles. This change will have a direct impact on general consumers as well as vehicles for commercial use, an RTO official said, according to a report by CNBC 18. 

Not only that, now the tax will be levied on the basis of the value of the vehicles. Under the new vehicle tax policy of the Maharashtra government, now the tax on vehicles will be fixed on the basis of their value. Petrol vehicles will have to pay 11% tax up to Rs 10 lakh, 12% for Rs 10 to 20 lakh and 13% on cars worth more than Rs 20 lakh. At the same time, the rates for diesel vehicles will be -13%, 14% and 15%, which are slightly higher than petrol.

Direct 20% tax on imported vehicles

If a vehicle is imported or registered in the name of a company, it will now be subject to a direct one-time tax of 20%. This provision is being seen as a significant change, especially for commercial use and expensive cars.

CNG and LNG vehicles will also be subject to additional tax. Vehicles running on CNG and LNG used to get some tax relief earlier, but now they will be subject to an additional tax of 1% across all categories. This will put an additional burden on eco-friendly options, but the government says this step is necessary to increase state revenue.

Tax on commercial vehicles according to value

In the case of goods-carrying vehicles, earlier the tax was levied on their load capacity, but now it will be decided on the basis of the ex-showroom price of the vehicle. Now these vehicles will be taxed at 7%. For example, if a pickup truck costs Rs 10 lakh, now it will cost around Rs 70,000 as against Rs 20,000 earlier.

Relief for EV

The government has given relief to electric vehicles. There was a proposal to impose 6% tax on EVs costing more than Rs 30 lakh, which has been postponed for now. This will boost the EV sector and also provide relief to auto companies.

The Maharashtra government says that the aim of this new tax system is to increase the state’s revenue, ensure transparency in tax collection and ensure simplicity of the system. Through this, the government is taking steps to prevent tax evasion and collect tax according to the actual value of vehicles.