The cost of buying new vehicles in Maharashtra has gone up as the Maharashtra Motor Vehicle Tax (Amendment) Act, 2025, came into effect on July 1, introducing higher one-time tax rates across multiple categories.
According to officials, the most significant impact will be seen in high-end cars, CNG vehicles, and goods carriers, which now attract substantially higher taxes. The amendment has also raised the price bracket cap used for tax calculation from ₹20 lakh to ₹30 lakh, reflecting the increase in vehicle prices over recent years. Despite the changes, electric vehicles (EVs) continue to be fully exempt from this tax, in line with the government’s push for cleaner and more sustainable transport.
Under the updated system, petrol vehicles registered in an individual’s name are now subject to a one-time tax of 11% for vehicles priced below ₹10 lakh, 12% for those in the ₹10–20 lakh range, and 13% for those costing more than ₹20 lakh. Diesel vehicles, which are taxed more heavily due to their higher environmental impact, will now attract rates of 13%, 14%, and 15% respectively across the same price segments.
The government has stated that this move aims to balance revenue generation with environmental priorities, while also adjusting to the growing number of high-value vehicles on the roads.
