Maharashtra hikes Green Tax to combat air pollution, older vehicles to face double charges

Mumbai, April 10 In a serious bid to curb rising air pollution levels across the state, the Maharashtra government has implemented a crucial amendment to the Motor Vehicle Tax Act. Under the Maharashtra Motor Vehicle Tax (Amendment) Bill 2026, passed during the Assembly session, the Environment (Green) Tax levied on older vehicles has seen a substantial increase.

According to the new rates, the tax on old and polluting vehicles has nearly doubled, a move expected to significantly impact the pockets of vehicle owners.

The state government has officially announced the revised tax structure following an amendment to the Motor Vehicle Tax Act passed in the state legislature during the budget session. After receiving the Governor's assent, the revised Act has been published in the official gazette.

Under these new provisions, tax will be levied every 5 years once a vehicle completes 15 years from its initial registration. The tax amount will be determined based on the vehicle type and its emission standards. While this change is expected to impose a financial burden on owners of older vehicles, officials claim it will encourage a shift towards eco-friendly and newer models.

A senior official from the Transport Department stated that these reforms address the state's deteriorating air quality and will be implemented shortly.

The new tax charges are based on the fuel rule and BS (Bharat Stage) compliance. For Two-Wheelers, BS-VI or above standards: Rs 2,000, BS-IV or below standards: Rs 4,000. For Petrol Four-Wheelers, BS-VI or above: Rs 3,000, BS-IV or below: Rs 6,000. For Diesel Vehicles, BS-VI or above: Rs 3,500, BS-IV or below: Rs 7,000.

Under the 'Maharashtra Electric Vehicle Policy 2025,' the state government has introduced a new mandate for infrastructure. It will now be compulsory for future residential and commercial housing societies to provide electric vehicle (EV) charging facilities for residents and occupants.

Recognising the rise in respiratory illnesses and health issues caused by petrol and diesel emissions, the state government is actively promoting the production and use of electric vehicles to conserve the environment.

As a major incentive, the government has announced a total toll waiver for electric vehicles at all toll booths across the state, including the Atal Setu.

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