Maharashtra's deputy chief minister Ajit Pawar has announced the state budget for 2025-26, which is set to take effect from April 1, 2025. The new budget introduces some tax changes that will affect vehicles powered by CNG, LPG, and electric cars.
- EVs priced above Rs 30 lakh will attract a 6 percent tax in Maharashtra
- CNG/LPG vehicle tax increased by 1 percent
- Motor vehicle tax upper limit raised to Rs 30 lakh
Maharashtra Budget 2025 Motor Vehicle Tax Amendments
The Maharashtra budget 2025 levies a flat one-time 6 percent tax on EVs priced above Rs 30 lakh, which could impact high-end EV offerings from manufacturers like Hyundai, Kia, BYD, etc. This new EV tax is somewhat of a U-turn from the state's prior encouragement of EV adoption via incentives and subsidies, and it may affect Tesla’s plans to enter India in the coming months.
CNG/LPG cars for private buyers could become more expensive
The current 7 percent tax on private CNG and LPG vehicles have been hiked by 1 percent, which is estimated to bring in Rs 150 crore for the state throughout the year. Commercial CNG/LPG vehicle taxation, however, will remain unaffected. The upper limit for motor vehicle tax has also been increased from Rs 20 lakh to Rs 30 lakh, which means buyers of high-end cars could have to pay up to Rs 10 lakh more in taxes in Maharashtra. This is expected to add another Rs 170 crore to state revenue.
Construction vehicles and light goods vehicles (capable of carrying up to 7.5 tonnes) a 7 percent lump sum tax, which is anticipated to generate revenues of Rs 180 crore and Rs 625 crore, respectively.
Hormazd Sorabjee
Anurag Chaturvedi
