CNG And LPG-powered Cars Along With Premium Electric Vehicles To Get Costlier In Maharashtra Soon

The new proposal suggests revising the motor vehicle tax by 1 percent for CNG and LPG-powered vehicles and introducing a flat 6 percent tax on EVs priced over Rs 30 lakh

In a recent development, the Maharashtra state government announced its budget for the fiscal year 2025-26, wherein one of the key points was the proposed increase in motor vehicle tax. The state government’s new budget, which was presented by Deputy Chief Minister Ajit Pawar, gets the amendment to the motor vehicle tax to rake in an expected revenue of Rs 150 crore for the state.

What’s Been Revised?

The new budget proposes an upward revision of 1 percent in the motor vehicle tax for CNG and LPG-powered privately owned vehicles. Currently, it stands at 7 to 9 percent for these vehicles, depending on their type and price, as cited by the minister.

It has also been announced that premium electric cars (priced over Rs 30 lakh) will now be taxed at 6 percent. That said, all EVs costing under Rs 30 lakh will still not be entitled to any of these taxes in the state. The new budget has also suggested bumping up the maximum limit of the motor vehicle tax from Rs 20 lakh to Rs 30 lakh, which is being suggested to generate additional revenue of approximately Rs 170 crore for the state.

Also Read: Take A Look At The Waiting Periods On EVs Under Rs 20 lakh In March 2025

An Overview Of CNG And Electric Cars In India

As of now, there are more than 20 cars that come with the CNG option, including the Tata Nexon, Hyundai Grand i10 Nios, and Maruti Fronx. Demand for CNG cars has only been on the rise in recent years, with CNG cars even outselling petrol and diesel-powered vehicles on some occasions.

Even the number of electric cars has been going up, with more and more carmakers joining the fray. There are many EVs in India priced above Rs 30 lakh, which includes all the luxury models along with some offerings from mass-market brands as well such as the Kia EV6 and Hyundai Ioniq 5. The above-stated amendments will imply that all these models will get costlier if the proposed revisions do come into effect starting from the new financial year.

What are your thoughts on the new proposed revisions of the Maharashtra government? Let us know in the comments.

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