The Maharashtra government is actively exploring ways to increase state revenue from automotive sales. While electric vehicles remain exempt from new taxes, luxury cars and CNG vehicles are now targeted with increased one-time tax rates to generate additional income.
The maximum one-time tax on luxury cars in Maharashtra has been raised from Rs 20 lakh to Rs 30 lakh. This move is expected to boost the state’s tax collection by Rs 170 crore in the financial year 2025–26, reflecting the government's focus on tapping into high-end vehicle sales.
Petrol vehicles registered under an individual’s name are taxed at 11% for prices below Rs 10 lakh, 12% for Rs 10–20 lakh, and 13% for above Rs 20 lakh. Diesel vehicles incur higher taxes: 13% for under Rs 10 lakh, 14% for Rs 10–20 lakh, and 15% for those priced above Rs 20 lakh.
CNG and LNG vehicles now face a 1% hike in the one-time tax across all pricing categories. Additionally, vehicles—petrol or diesel—imported or registered under a company’s name will be uniformly taxed at 20%, irrespective of their price.
Goods carriers such as pickup trucks, tempos (up to 7,500 kg), and construction vehicles are now taxed at 7% of their purchase price. This replaces the older weight-based system. For example, a Rs 10 lakh pickup that earlier attracted a Rs 20,000 tax will now incur Rs 70,000.