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 significantly impact new buyers of CNG cars, luxury models and commercial vehicles, among others, as the one-time tax, which is calculated based on a price cap, has increased from Rs 20 lakh to Rs 30 lakh.
- Tax on petrol cars ranges between 11-13 percent
- Tax on diesel cars ranges between 13-15 percent
- Tax on LPG and 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 the state of Maharashtra.
How much will new car prices increase
CNG cars now taxed between Rs 8-10 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 fuels that are priced under Rs 10 lakh will be taxed at 8 percent, while those priced between Rs 10 lakh-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 the Maharashtra government about Rs 96,000 (up from about Rs 86,000) in taxes on the Rs 10.70 lakh Brezza CNG VXI. 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
As mentioned above, a major change in the tax law is the increase in the maximum 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 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 same buyer would now have to shell out about Rs 26 lakh.
Mass market petrol and diesel cars 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 on the same price brackets.
Also see:
Delhi bans fuel sale to 15 year old petrol, 10 year old diesel vehicles
Government considering easing CAFE norms for cars under 1,000kg
