The Maharashtra government has introduced a new amendment bill to the Maharashtra Motor Vehicles Act 1958, which proposes higher taxes on vehicles. This move is expected to increase the financial burden on vehicle buyers, particularly those purchasing CNG, LPG, and high-end electric vehicles (EVs).

Key Tax Hikes in the Bill

The Maharashtra Motor Vehicles Tax Act 2025 Bill suggests:

• 6% motor vehicle tax on electric vehicles (EVs) priced above ₹30 lakh
• 1% increase in tax for CNG and LPG vehicles
• 7% one-time tax on construction vehicles (such as cranes, compressors, and projectors)
• 7% tax on light goods vehicles carrying up to 7,500 kg

Who Introduced the Bill?

Maharashtra’s Transport Minister Pratap Sarnaik presented the bill in the state assembly. The increase in taxes will particularly affect those purchasing CNG vehicles, which have been a popular choice due to lower fuel costs.

When Will Vehicle Prices Rise?

The new tax rates will be effective from the 1st of next month. According to reports, this decision is expected to generate ₹1,300 crore in additional revenue for the Maharashtra government within a year.

Impact on Vehicle Buyers

• Higher prices for electric, CNG, and LPG vehicles
• Increased cost of construction and transport vehicles
• Potential slowdown in sales of eco-friendly vehicles due to added tax burden

This policy change may affect consumer sentiment, especially among those opting for environmentally friendly vehicles like EVs and CNG cars.