Maharashtra Imposes 1% Tax on Private CNG, LPG and High-End Vehicles From July 1, 2025

From Today, July 1, 2025, the Maharashtra transport department will charge a one-time tax for non-transport vehicles such as CNG, LPG vehicles, and high-end cars, which was approved in the state budget in March. The state government will charge 1% extra tax across all categories of non-transport CNG or LPG vehicles.

The motor vehicle (MV) tax has been Rs 20 lakh so far, which was the ceiling, and now it has been increased to Rs 30 lakh. The hike will generate additional revenue of around Rs 170 crore for the state government in the financial year 2025-26. The notification has already been issued that the hike will be implemented from 1 July 2025.

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A CNG vehicle, which costs upto Rs 10 lakh now, will have to pay 7% tax. So, if you buy a CNG car for Rs 10 lakh, the tax on the car payable is Rs 70,000, and with revision from this month, this will increase to Rs 80,000. Likewise, if the CNG vehicle cost is Rs 20 lakh, at present day the tax is Rs 1.4 lakh and this will go up to Rs 1.6 lakh. At present, Maharashtra currently has over 17 lakh CNG and LPG-run vehicles, with many of them in dual variants of petrol and CNG.

Motor vehicle tax will also be charged on Light Goods Vehicles (LGVs) at the rate of 7% for carrying goods up to 7500 kg in the state. This is expected to generate additional revenue for the government of Rs 625 crores in the ongoing financial year 2025-26. 

There is no tax on electric vehicles (EVs) at present, promoting citizens to buy electric cars and bikes. Currently, in the state, the one-time tax for petrol cars registered under an individual's name is set at 11% for vehicles priced below Rs 10 lakh, 12% for those between Rs 10 lakh and Rs 20 lakh, and 13% for those priced above Rs 20 lakh. 

Diesel vehicles have to pay a one-time tax of 13% for vehicles below Rs 10 lakh, 14% for those priced between Rs 10 lakh and Rs 20 lakh and 15% for those above Rs 20 lakh.  If a vehicle is imported or registered under a company name, both petrol and diesel vehicles are subject to a uniform one-time tax rate of 20%.