CNG, luxury cars to get expensive in Maharashtra — Details inside

The Maharashtra government has been mulling ideas to increase its state revenue from automotive sales. In the last few months, we have heard conversations around increasing tax on electric cars and CNG cars in the state. While electric cars are safe from any additional tax impositions, luxury cars and CNG cars are set to become more expensive in the state, thanks to the newly imposed taxes. Read the story to know more about new tax impositions on luxury and CNG cars in the state of Maharashtra.

Maximum luxury car tax in Maharashtra increased to 30 lakh

The Maharashtra government has increased the one-time tax on luxury cars that can go up to Rs 30 lakh. Earlier, the maximum limit for a one-time tax imposition was 20 lakh. The Government of Maharashtra reveals that an increase of Rs 10 lakh tax on the sale luxury cars will increase the tax collection of the state by Rs 170 crore in FY2025-26.

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Taxation on petrol and diesel cars in Maharashtra

In Maharashtra, private petrol vehicles are subject to a one-time registration tax based on their price:

• 11% for cars priced below Rs 10 lakh

• 12% for those priced between Rs 10 lakh and Rs 20 lakh

• 13% for cars priced above Rs 20 lakh

For diesel vehicles, the tax rates are slightly higher:

• 13% for cars costing less than Rs 10 lakh

• 14% for those priced between Rs 10 lakh and Rs 20 lakh

• 15% for vehicles priced over Rs 20 lakh

CNG, LNG and commercial vehicles tax revised

CNG and LNG vehicles in Maharashtra will face a 1% increase in one-time tax across all three price segments. Imported vehicles or those registered under a company name—regardless of whether they run on petrol or diesel—will be subject to a flat one-time tax rate of 20%, regardless of their cost, officials said.

For goods carriers—including pickup trucks, tempos (up to 7,500 kg gross vehicle weight), and construction vehicles like cranes, compressors, and projectors—the one-time tax will now be 7% of the vehicle's purchase price. This replaces the earlier system, where tax was calculated based on the vehicle’s weight.

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For instance, a pickup truck costing Rs 10 lakh, which previously incurred around Rs 20,000 in tax based on its weight, will now be taxed approximately Rs 70,000 under the revised price-based method. Earlier, the one-time tax for goods vehicles ranged from Rs 8,400 to Rs 37,800 for those weighing between 750 kg and 7,500 kg, as per the transport department’s website.

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