Mumbai, Mar 21 (PTI) The Maharashtra legislature on Friday cleared the Maharashtra Motor Vehicles Tax (Amendment) Bill 2025 that is aimed at increasing vehicle tax and potentially generating additional revenue.

The Maharashtra Motor Vehicles Tax (Amendment) Bill 2025 was passed in the legislative council on Friday. It was earlier cleared by the legislative assembly. The bill amends the Motor Vehicles Act 1958.

Although the bill was passed in the council, opposition members raised concerns over taxing electric vehicles (EVs).

MLCs Satyajeet Tambe (Independent) and Anil Parab (Shiv Sena UBT) said the bill defies the logic of encouraging people to reduce emission by switching to EVs.

Tambe, who opposed the bill, said by taxing even EVs over Rs 30 lakh, the move will hurt the middle class.

Replying to the debate, Transport Minister Pratap Sarnaik said the bill will not hurt the middle class as the move aims to tax vehicles above Rs 30 lakh and such vehicles are not generally used by the middle class.

He said the state is also planning to bring a parking policy.

The bill aims to increase the maximum limit of one-time tax for motorcycles, tricycles, motorcars and omni bus. The tax on compressed natural gas (CNG) or liquefied petrol gas (LPG) vehicles will be increased by 1 per cent.

The Maharashtra Budget 2025-26 had proposed a 6 per cent motor vehicle tax on electric vehicles (EVs) priced above Rs 30 lakh, a 1 per cent hike in tax for CNG and LPG vehicles, and a 7 per cent tax on construction vehicles and light goods vehicles (LGVs).

The amendment bill proposes to levy a one-time tax of 7 per cent of the cost of vehicles used for construction work such as cranes, compressors, projectors, and excavators at the time of their registration.

The amendment also includes a one-time 7 per cent tax levy on vehicles used for the carriage of goods or materials up to 7,500 kilograms. PTI PR BNM

Vehicle tax increase expands registration levies to include high value electric and commercial vehicles, altering tax incidence. The Maharashtra Motor Vehicles Tax (Amendment) Bill 2025 amends the Motor Vehicles Act 1958 to raise one time registration taxes and broaden taxable categories: it increases maximum one time tax for motorcycles, tricycles, motorcars and omnibuses; raises tax on CNG and LPG vehicles; introduces a one time 7% tax on construction vehicles and on goods carrying vehicles up to 7,500 kilograms; and applies a motor vehicle tax to higher valued electric vehicles.