Living in Maharashtra? Get Ready to Pay More Tax on CNG And Luxury EVs: Here’s What You Need to Know

•March 12, 2025

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Living in Maharashtra? Get Ready to Pay More Tax on CNG And Luxury EVs: Here’s What You Need to Know

KEY HIGHLIGHTS

CNG cars will now have to pay an extra 1% tax
Tax ceiling has been raised from Rs 20 lakh to Rs 30 lakh
Luxury electric vehicles will now have to pay 6% tax

If you're planning to buy a CNG car or a premium electric car, be ready to shell out more tax. Maharashtra's 2025 state budget has introduced higher taxes on CNG and luxury electric vehicles. But the question arises: Why is the government increasing taxes on eco-friendly options? How much is the hike? Let's break it down for you in this article. However, before moving ahead, make sure to join the 91Wheels WhatsApp community to never miss out on any automotive updates.

What Has Changed ?

CNG & LPG cars: CNG and LPG cars will now have to pay an additional 1% motor vehicle tax, which makes them slightly more expensive. While this move aims to generate Rs 150 crore revenue.
Luxury EVs: The luxury electric vehicles, priced above Rs 30 lakh, will now attract 6% tax. It marks a significant shift from the previous EV subsidies. According to the reports, this comes as Tesla is preparing to enter the Indian market alongside the established premium brands like BMW, AUDI, Mercedes-Benz, and BYD.
Construction and goods equipment: Cranes, Excavators and construction equipment will now face 7% tax. While it is expected to bring Rs 180 crores of revenue. Light goods vehicle, which comes under 7500 kg, will now be taxed 7%, contributing a total of Rs 625 crore to the revenue.
High End cars: The motor vehicle tax ceiling has been raised from Rs 20 lakh to Rs 30 lakh, affecting those who are buying expensive cars.

How This Will Impact You?

CNG buyers: The 1% tax increase will add to the upfront cost, petrol and diesel will become more appealing options.
Luxury EV buyers: The 6% tax on high-end electric vehicles, which indicates that Tesla, Audi, BMW, BYD, and Mercedes-Benz electric vehicles will be more costly in Maharashtra as compared to other states. This could slow down EV adoption in Maharashtra.
Luxury Car buyers: If you want to own a premium SUV or sedan, the increased taxes will make you pay more, due to the increased on-road prices, making it even more expensive.

Verdict

Maharashtra's latest tax hikes on CNG and luxury EVs could make car ownership costlier, especially for buyers, looking for premium electric models. While the state government aims to boost revenue and fund welfare programs, these taxes might slow down EV adoption and push consumers toward more affordable alternatives. If you're planning to buy a car, reconsider your options to avoid paying extra.