The Maharashtra government has introduced key tax proposals in its latest budget, focusing on vehicle taxation and sustainable transport initiatives. These measures are expected to impact electric vehicle (EV) owners, CNG/LPG car users, and overall state revenue.
1. Increased Taxation on High-End EVs
The state government has proposed a 6% tax on EVs costing above ₹30 lakh.
This move aims to generate additional revenue while keeping EV adoption affordable for the majority of buyers in lower price brackets.
2. Motor Vehicle Tax Cap Revision
The government plans to increase the motor vehicle tax cap from the current ₹20 lakh to ₹30 lakh.
This change is expected to bring in an additional revenue of ₹170 crore in the financial year 2025-26.
3. Green Initiative: Diesel Bus Conversion to CNG & LNG
Maharashtra State Road Transport Corporation (MSRTC) will convert 6,000 diesel buses to CNG and LNG to promote cleaner fuel alternatives.
This transition aligns with the state's goal to reduce carbon emissions and dependence on diesel.
4. Increased Tax on CNG & LPG Cars
A 1% increase in motor vehicle tax is proposed for CNG and LPG cars.
Currently, these vehicles are taxed at 7-9% based on their type and cost.
This tax hike is expected to generate ₹150 crore in revenue for the 2025-26 financial year.
Impact on Consumers and the Auto Industry
Luxury EV buyers will see an increased tax burden, potentially slowing the adoption of premium electric cars.
CNG and LPG car owners will face slightly higher costs, though these fuels remain more affordable than petrol or diesel.
MSRTC's transition to cleaner fuels will set an example for other public transport initiatives across India.
Automobile manufacturers may adjust pricing or introduce incentives to balance the increased costs for consumers.
Maharashtra's budget signals a dual approach—encouraging sustainable transportation while increasing state revenue. While these tax hikes may concern some vehicle owners, the push for cleaner energy in public transport is a step toward environmental sustainability.
Disclaimer
The information in this article is based on the Maharashtra Budget 2025 announcements and is subject to further government modifications. Readers should refer to official government releases or consult tax professionals for precise details and implications.
