6% tax on premium electric cars, 1% hike for CNG vehicles proposed in this state: Details

In a bid to boost state revenue, the Maharashtra government has proposed a 6% tax on electric vehicles priced above Rs 30 lakh as part of its budget for the fiscal year 2025-26. The proposal, presented by Deputy Chief Minister Ajit Pawar, who also handles the finance portfolio, is expected to generate additional funds while bringing high-end EVs under the tax net.
Alongside the EV tax, the state has also announced a 1% hike in the Motor Vehicle Tax for privately owned CNG and LPG four-wheelers. This revision is projected to bring in an additional Rs 150 crore for the state exchequer in the next financial year.
The budget also outlines a 7% tax on vehicles used in construction activities, which is expected to contribute approximately Rs 180 crore in revenue. Similarly, light goods vehicles (LGVs) with a carrying capacity of up to 7,500 kg will now be subjected to a 7% tax, bringing in an estimated Rs 625 crore.

To further expand its tax base, the Maharashtra government has increased the maximum threshold for the Motor Vehicle Tax from Rs 20 lakh to Rs 30 lakh, a move aimed at generating Rs 170 crore in revenue.
The new taxation policies are expected to impact buyers of premium EVs, commercial transport operators, and those in the construction sector. (Inputs from PTI.)
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