When you intend to purchase a new car in Maharashtra, you should expect to pay more. The higher tax slabs representing various vehicles have been put under the Maharashtra Motor Vehicle Tax (Amendment) Act, 2025, since July 1, 2025.

Although the change is aimed predominantly at CNG and luxury cars, it also ensures moderate gains on car owners utilising petrol and diesel cars, with no changes in the case of EVs.

CNG and LPG Vehicles See Higher One-Time Tax

Included in the major changes are the increase in tax rates (CNG and LPG) by 1 per cent. These vehicles were previously taxed at 7%-9%, but they will be subject to tax at 8-10 per cent according to the price range:

• Below 10 lakh- 8 %

• Between 10-20 lakh - 9%

• Over 20 lakh- 10%

The hardest hit are the Luxury Cars and the Corporate Registrations

Another important amendment is raising the tax limit to 30 lakh, and there is a stable 20 per cent off-time tax levied on the import or registration of a vehicle by a company.

This has significant effects on those who purchase the luxury cars. An example is that the BMW M5, which costs 1.99 crore, will attract approximately 26 lakh as tax, as opposed to 20 lakh previously.

Revised Petrol and Diesel Vehicle Tax Rates

Petrol and diesel vehicle tax slabs are also restructured:

• Petrol

• Less than 10 lakh- 11 %

• 10-20 lakh - 12 %

• More than 20 lakh -13 %

• Diesel

• Less than 10 lakh -13 %

• 10-20 lakh - 14%

• More than 20 lakhs- 15 %

EVs are not subject to Taxes

Remarkably, the previously proposed tax of 6 per cent on EVs that cost more than 30 lakh was withdrawn. In Maharashtra, electric vehicles still enjoy zero registration and tax benefits.

This new tax scheme will definitely have an impact on the purchasing choices of the buyers, especially the premium and the alternative fuel ones.

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