Maharashtra Increases Motor Vehicle Tax on CNG and High-End EVs

In its Budget for the financial year 2025-26, the Maharashtra government has introduced key revisions to its motor vehicle tax structure. Presented by Finance Minister Ajit Pawar on 10 March 2025, the budget focuses on enhancing the state’s revenue while aligning with national economic goals. The revised tax policies, particularly affecting CNG vehicles and high-end EVs, are expected to generate substantial additional income for the state.

Increased Tax on CNG Vehicles

One of the significant changes in the budget is the 1% hike in motor vehicle tax for CNG-powered four-wheelers. This decision aims to generate an additional ₹150 crore in revenue for Maharashtra. While CNG vehicles are considered an environmentally friendly alternative to petrol and diesel, the government seeks to balance sustainability with economic needs through this measure.

New Tax for Premium Electric Vehicles

In another major move, the government has imposed a 6% tax on electric vehicles priced above ₹30 lakh. This marks a shift in Maharashtra’s EV policy, which previously encouraged adoption through subsidies and tax exemptions. The move is likely to impact high-end EV manufacturers and buyers, aligning taxation policies with the premium segment of the automobile industry.

Conclusion

Maharashtra’s revised motor vehicle tax structure reflects its strategy to increase revenue while maintaining focus on environmental sustainability. The tax hikes on CNG vehicles and premium EVs will contribute to the state’s financial stability while ensuring continued investment in infrastructure and development.

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