Maharashtra Just Made High-End Cars and CNG Vehicles More Expensive—Here’s How Much More You’ll Pay

The Maharashtra government has implemented a revised one-time motor vehicle tax structure effective today, increasing the cost of high-end luxury vehicles, CNG/LPG vehicles, and certain light goods carriers. The amendments were enacted through the Maharashtra Motor Vehicle Tax (Amendment) Act, 2025. A key feature of the revised law is the increase in the maximum tax ceiling from ₹20 lakh to ₹30 lakh. The change is expected to generate an additional ₹170 crore in tax revenue for the state during the fiscal year 2025–26, according to officials cited by The Times of India. The revised structure will impact a wide range of vehicle categories, with luxury cars and alternative-fuel vehicles bearing the brunt of the increase.

Also Read: Buying an EV or CNG Car? Expect to Pay More in Maharashtra

Previously, a diesel vehicle with an ex-showroom price of ₹2 crore, registered under an individual’s name, attracted a capped tax of ₹20 lakh, despite a calculated rate of 15% which would amount to ₹30 lakh. With the new ceiling, the tax will now be ₹30 lakh, effectively raising the vehicle’s cost by ₹10 lakh. The tax increase also affects company-registered and imported vehicles, which are taxed at a flat rate of 20%. A petrol or diesel vehicle priced at ₹2 crore under this category will now incur a tax of ₹30 lakh instead of the earlier cap of ₹20 lakh.

For individual buyers, petrol vehicle tax rates remain tiered—11% for vehicles priced below ₹10 lakh, 12% for those between ₹10–20 lakh, and 13% for vehicles above ₹20 lakh. Diesel vehicles are taxed slightly higher at 13%, 14%, and 15% respectively across the same price brackets. These rates will now apply fully up to the revised cap of ₹30 lakh.

Also Read: Maharashtra Government Scraps Proposed 6% Tax on High-End EVs Amid Backlash

As a result, a ₹2 crore petrol car registered under an individual’s name will see its one-time tax rise from ₹20 lakh to ₹26 lakh, calculated at 13%, raising the total cost of ownership by ₹6 lakh. Non-transport vehicles powered by CNG or LPG will also face a tax hike. A 1% increase has been applied uniformly across all price brackets. For instance, a ₹10 lakh CNG car will now attract a tax of ₹80,000 (8%), up from the previous ₹70,000 (7%). A ₹20 lakh CNG vehicle will see its tax increase from ₹1.4 lakh to ₹1.6 lakh.

Additionally, the tax regime for light goods vehicles (LGVs) such as pickup trucks has shifted from a weight-based calculation to a price-based structure. LGVs with a gross vehicle weight up to 7,500 kg will now be taxed at 7% of their ex-showroom price. The same 7% rate will apply to non-transport construction vehicles such as cranes and compressors.

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Electric vehicles (EVs), however, continue to be exempt from the one-time tax. While there was a prior proposal to levy a 6% tax on EVs priced above ₹30 lakh, the state government has since withdrawn the plan, keeping all EVs tax-exempt under the current structure.