Maharashtra Raises Vehicle Tax Ceiling, Luxury Cars Hit Hardest

Maharashtra's new vehicle tax policy has officially come into force, bringing a substantial hit to luxury car buyers and business vehicle users across the state. Under the latest rates, petrol cars registered separately face tiered taxation:

• 11% for vehicles under Rs. 10 lakh

• 12% for those between Rs. 10-20 lakh

• 13% for cars exceeding Rs. 20 lakh

Diesel cars carry higher rates, ranging from:

• 13% for vehicles under Rs. 10 lakh

• 14% for those between Rs. 10-20 lakh

• 15% for cars exceeding Rs. 20 lakh

The strategy particularly impacts goods carriers, including pickup trucks and tempos up to 7500 kg. These cars now face a 7% tax based on the purchase price, removing the old weight-based scheme. A Rs. 10 lakh pickup truck that previously caused Rs. 20,000 in tax will now attract roughly Rs. 70,000.

CNG and LNG vehicles across all groups see a 1% tax rise, while foreign vehicles and company-registered vehicles keep a flat 20% rate. Electric cars continue to have full tax immunity, confirming the state's commitment to eco-friendly transportation.

Source: MotorBeam