- CNG and LPG vehicle tax to increase by 1% in Maharashtra.
- New tax rates expected to generate an additional revenue of ₹320 crore.
- Electric vehicles priced over ₹30 lakh will incur a 6% tax rate.
CNG and LPG Vehicle Tax Increase in Maharashtra
Paving the way for a significant change, Maharashtra’s Deputy Chief Minister and Finance Minister Ajit Pawar announced in the state budget an increase in the motor vehicle tax for CNG and LPG vehicles by 1%. This tax adjustment comes as part of a broader fiscal strategy aimed at increasing state revenue.
Details of the New Tax Structure
Currently, personal four-wheeled CNG and LPG vehicles fall under a tax slab of 7% to 9% based on the vehicle type and price. With the proposed increase, this tax will shift, enhancing the financial burden on new vehicle buyers.
Expected Revenue and Impact
The government anticipates that the tax hike will contribute approximately ₹150 crore to state revenue in the fiscal year 2025-26. This increment combined with the tax on electric vehicles priced over ₹30 lakh at a rate of 6% is projected to generate an additional total revenue of ₹320 crore.
Changes in Maximum Tax Threshold
The maximum tax limit is also set to be revised from ₹20 lakh to ₹30 lakh, an essential move aimed at imposing a uniform tax rate of 7% on certain heavy vehicles. This increase in the tax threshold means that more expensive vehicles will contribute higher taxes to state revenue.
Future Expectations and Fiscal Measures
Under the proposed changes, Maharashtra expects to garner about ₹170 crore from the new tax measures, with additional predictions of gaining ₹180 crore from other heavy-duty vehicle taxes such as cranes, compressors, projectors, and excavators.
This comprehensive tax strategy reflects Maharashtra’s commitment to improving its economic framework while addressing the growing need for public revenue. Each of these adjustments emphasize the state’s fiscal responsibility in adapting to changing transportation trends and financial requirements.