Maharashtra's Revamped Vehicle Tax Structure Elevates Costs for High-End and CNG Vehicles
The Maharashtra government has revised its one-time tax structure, increasing costs for high-end cars, CNG/LNG vehicles, and goods carriers from July 1. Prices for luxury vehicles could rise by Rs 10 lakh or more due to new tax rates. Electric vehicles remain exempt from these changes.
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From July 1, high-end vehicles, including those running on CNG and LNG, will see a rise in prices due to the Maharashtra government's revised one-time tax structure. Under the new system, vehicles previously capped at a Rs 20 lakh tax bracket will now be subject to a Rs 30 lakh cap, significantly impacting luxury car prices.
Maharashtra's revised tax scheme means high-end petrol and diesel cars parked under personal ownership, costing Rs 1.33 crore and Rs 1.54 crore, respectively, could face over Rs 20 lakh in taxes. The tax on petrol cars now stands at 11% for prices under Rs 10 lakh, 12% for between Rs 10 lakh and Rs 20 lakh, and 13% for above Rs 20 lakh. Diesel cars will see similar hikes, officials say.
While luxury car owners will feel the pinch, goods carriers like pickup trucks and construction vehicles will be taxed based on their price rather than weight, leading to tax increases. Meanwhile, electric vehicles enjoy a continued tax exemption following the abandonment of a proposed tax hike, according to RTO officials.
(With inputs from agencies.)
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