The Maharashtra Motor Vehicle Tax (Amendment) Act, 2025 has come into effect from July 1, and the revised tax rates for most vehicles means that buying a new car in the state has become more expensive. The amendment to the Maharashtra Motor Vehicle Tax Act, 1958 will specifically impact buyers of new CNG cars, luxury models and commercial vehicles, among others.
- Tax on petrol cars is 11-13 percent
- Tax on diesel cars is 13-15 percent
- Tax on LPG, CNG cars and bikes increased by 1 percent to 8-10 percent
EV prices unaffected by new tax rate
While a 6 percent tax (calculated on the ex-showroom price) was mooted on EVs that are priced above Rs 30 lakh, this proposal was dropped. All electric vehicles continue to enjoy tax and registration benefits in Maharashtra.
How much will new car prices increase
CNG cars now taxed between 8 and 10 percent, up from 7-9 percent
The tax on CNG and LPG vehicles registered by an individual buyer has increased by 1 percent. Cars and bikes that run on the alternate fuel and are priced under Rs 10 lakh will be taxed at 8 percent, while those priced between Rs 10 lakh and Rs 20 lakh will be taxed at 9 percent; CNG and LPG vehicles priced above Rs 20 lakh have a 10 percent tax rate.
For reference, tax on a Maruti Brezza LXI CNG, priced at Rs 9.64 lakh would be about Rs 77,000 (up from about Rs 68,000), while a buyer would pay about Rs 96,000 (up from about Rs 86,000) in taxes on the mid-spec Rs 10.70 lakh Brezza VXI CNG. At the moment, there aren’t any CNG vehicles on sale that are priced above Rs 20 lakh.
Vehicles imported or registered under a company have a one-time tax of 20 percent.
A major change is the increase in the maximum tax ceiling from Rs 20 lakh to Rs 30 lakh. Along with that, the Amendment states a flat one-time tax of 20 percent on any vehicle imported to the country or registered to a company. Both these changes make luxury cars more expensive to buy. Before the implementation of the new tax code, a BMW M5 (Rs 1.99 crore) buyer would have paid Rs 20 lakh in taxes but with the increase in the cap, the buyer would now have to shell out about Rs 26 lakh.
Mass market petrol and diesel car tax also revised
Petrol cars priced below Rs 10 lakh are taxed at 11 percent, those between Rs 10 lakh and Rs 20 lakh at 12 percent, and those priced above Rs 20 lakh at 13 percent. Diesel cars are taxed at 13 percent, 14 percent and 15 percent, respectively, on the same price brackets.
All prices, ex-showroom, India
Hormazd Sorabjee
Sahil Kukreja
