Electric vehicles to cost more in Maharashtra — All details inside

The Maharashtra Government has revealed its state budget for the financial year 2025-26 and it brings a few modifications to the tax impositions on electric vehicles, commercial vehicles as well as LPG and CNG vehicles. While this move may rattle a set of prospective EV buyers, it is said to generate good amounts of revenue to the state in taxes. Read on to know more about the Maharashtra motor vehicle tax revision for EVs and other transportation.

EVs to become more expensive in Maharashtra

Under the revised tax structure for motor vehicles in the state, electric vehicles costing above Rs 30 lakh ex-showroom will be levied with 6% motor vehicle tax. Needless to say, this move will keep the budget EV segment falling under Rs 30 lakh intact but premium EV makers like Mercedes-Benz, BMW, BYD and even the upcoming Tesla could feel the heat from this move. While the revenue will surely go up, this move could slow the adoption of electric vehicles in the state as it could demotivate the prospective EV buyers.

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CNG/LPG vehicles tax to increase too

In addition to the electric vehicles, the Maharashtra Government has also introduced tax revision to the CNG and LPG-powered vehicles as well. The government has proposed to increase the motor vehicle tax on CNG and LPG-powered vehicles by 1%. This move will increase the acquisition cost of these vehicles, which are otherwise popular for their low-running costs and fuel efficiency. As per the report, this imposition of tax could generate revenue north of Rs 150 crore to the state. How will this new tax imposition change the demand and overall sales is something that remains to be seen.

Commercial segment to feel the heat 

The construction and logistics sectors will also bear the impact of increased taxation. A 7% lump sum tax has been imposed on construction vehicles such as cranes and excavators, expected to generate ₹180 crore in revenue. Likewise, light goods vehicles (LGVs) with a capacity of up to 7,500 kg will now be subject to the same 7% tax, contributing an estimated Rs 625 crore to the state's funds.

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Additionally, the budget raises the motor vehicle tax ceiling from ₹20 lakh to ₹30 lakh, affecting high-value vehicle purchases and bringing in approximately Rs 170 crore in revenue.

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