The state government justifies the tax hike as a necessary step to increase revenue, particularly through luxury and commercial vehicle segments. |
Mumbai: The Maharashtra legislature on Friday approved the Maharashtra Motor Vehicles Tax (Amendment) Bill 2025, which aims to increase vehicle taxes, generating additional state revenue. While the bill received clearance from both the legislative assembly and council, it faced opposition over its impact on electric vehicles (EVs).
Bill Passed Amid Concerns Over EV Taxation
The Maharashtra Motor Vehicles Tax (Amendment) Bill 2025, which amends the Motor Vehicles Act 1958, was passed despite concerns raised by opposition members. Independent MLC Satyajeet Tambe and Shiv Sena (UBT) MLC Anil Parab criticized the provision to tax EVs costing above Rs 30 lakh. They argued that imposing additional charges on EVs contradicts the state’s objective of promoting green energy and reducing emissions.
Tambe pointed out that the tax would impact the middle class, making EV adoption more challenging. However, Transport Minister Pratap Sarnaik countered this claim, stating that the tax will not affect the middle class as vehicles above Rs 30 lakh generally fall in the luxury segment.
Key Provisions of the Amendment Bill
The bill proposes various tax increases across different categories of vehicles:
Motorcycles, Tricycles, and Motorcars: The maximum limit of one-time tax has been increased.
Electric Vehicles: A 6 per cent motor vehicle tax will be levied on EVs priced above Rs 30 lakh.
CNG and LPG Vehicles: The tax on vehicles running on compressed natural gas (CNG) and liquefied petroleum gas (LPG) will increase by 1 per cent.
Construction Vehicles: A one-time 7 per cent tax will be imposed on machinery such as cranes, compressors, projectors, and excavators at the time of registration.
Light Goods Vehicles (LGVs): A 7 per cent tax will be levied on vehicles used for the carriage of goods or materials weighing up to 7,500 kilograms.
State Plans Parking Policy
During the debate, Transport Minister Pratap Sarnaik also announced that the government is working on a parking policy to address urban congestion. While details of this policy remain undisclosed, it is expected to regulate parking in key urban areas and further contribute to revenue generation.
Revenue Boost vs. Environmental Concerns
The state government justifies the tax hike as a necessary step to increase revenue, particularly through luxury and commercial vehicle segments. However, opposition leaders and environmental advocates argue that the move contradicts efforts to promote sustainable transportation. The debate highlights the challenge of balancing fiscal policies with environmental goals in Maharashtra’s evolving transport landscape.
