Maharashtra revises one-time vehicle tax from July 1; high-end cars and CNG vehicles to cost more

High-end cars, CNG/LNG vehicles and goods carriers in Maharashtra are set to become more expensive from Tuesday (July 1) due to the revised one-time tax structure of the state government, officials said.

The cap for one-time tax will now be ₹30 lakh, against the existing ₹20 lakh, which means cars with an ex-showroom price of more than ₹20 lakh will get costlier by at least ₹10 lakh, they said.

High-end diesel and petrol cars registered under an individual’s name, with prices around ₹1.33 crore and ₹1.54 crore, respectively, will now attract more than ₹20 lakh in one-time tax, RTO officials said on Monday (June 30).

In Maharashtra, the one-time tax for petrol cars registered under an individual’s name is 11% for the vehicles priced below ₹10 lakh, 12% for those costing between ₹10 lakh and ₹20 lakh, and 13% for cars priced above ₹20 lakh, they said.

For diesel cars, the one-time tax is 13% for those priced below ₹10 lakh, 14% for the four-wheelers priced between ₹10 lakh and ₹20 lakh, and 15% for those costing above ₹20 lakh.

If a vehicle is imported or registered under a company name, both petrol and diesel vehicles attract a flat one-time tax of 20%, regardless of their price, the officials pointed out.

According to the RTO officials, cars running on compressed natural gas (CNG) or liquefied natural gas (LNG) will also become slightly more expensive, with a 1% hike in one-time tax across all the three price brackets.

Goods carriers such as pickup trucks, tempos with a gross vehicle weight of up to 7,500 kilograms, and construction vehicles like cranes, compressors and projectors will now be taxed at 7% of their price.

A senior RTO official said these vehicles will now be taxed based on their price rather than their gross weight, which was the earlier basis.

For example, earlier a pickup vehicle costing around ₹10 lakh would attract a tax of about ₹20,000 based on weight, which under the revised structure will be around ₹70,000, he said.

According to the transport department’s website, the earlier one-time tax ranged from ₹8,400 to ₹37,800 for goods vehicles with gross weights between 750 kg and 7,500 kg.

”Electric vehicles (EVs) will continue to enjoy tax exemptions. Although the state government had earlier proposed a 6% tax on EVs priced above ₹30 lakh, the proposal was later withdrawn,” the official said.