maharashtra-clears-bill-to-hike-vehicle-taxes-including-evs

The Maharashtra legislature has passed the Maharashtra Motor Vehicles Tax (Amendment) Bill 2025, which seeks to increase vehicle taxes across various categories, potentially bolstering state revenue.

 

The legislative council cleared the amendment on Friday, following its approval in the legislative assembly.

 

The bill amends provisions of the Motor Vehicles Act, 1958, introducing higher levies on electric vehicles (EVs), compressed natural gas (CNG) and liquefied petroleum gas (LPG) vehicles, as well as construction and light goods vehicles (LGVs).

 

However, the proposal to tax electric vehicles priced above ₹30 lakh sparked debate, with opposition members questioning the rationale behind the move.

 

During the discussion in the council, MLCs Satyajeet Tambe (Independent) and Anil Parab (Shiv Sena UBT) voiced concerns over the taxation of EVs.

 

They argued that the bill contradicts the state’s push for greener transport alternatives by imposing levies on high-end electric vehicles.

 

Tambe, opposing the bill, remarked that taxing even EVs exceeding ₹30 lakh would adversely impact the middle class.

 

Also read: Tata Motors to raise price of EVs

 

 

Transport Minister Pratap Sarnaik, responding to the debate, defended the bill, asserting that the taxation would not affect the middle class, as “the move aims to tax vehicles above ₹30 lakh and such vehicles are not generally used by the middle class.”

 

Sarnaik further stated that the government was in the process of formulating a new parking policy.

 

The amendment seeks to raise the maximum limit of one-time tax applicable to motorcycles, tricycles, motorcars, and omnibuses. The levy on CNG and LPG vehicles will be increased by 1 per cent.

 

Under the Maharashtra Budget 2025-26, a 6 per cent motor vehicle tax has been proposed for EVs priced above ₹30 lakh, while a 1 per cent increase is planned for CNG and LPG vehicles. Construction vehicles and LGVs will now be taxed at 7 per cent.

 

Additionally, the amendment bill stipulates a one-time tax of 7 per cent of the cost for vehicles used in construction activities, including cranes, compressors, projectors, and excavators, at the time of registration.

 

It also proposes a one-time 7 per cent tax on vehicles used for transporting goods and materials up to 7,500 kilograms.

 

While the bill has now secured legislative approval, its implications for the automobile sector and consumers remain to be seen.