CNG, LNG, and High-End Cars to Cost More
Maharashtra has increased vehicle taxes by up to ₹10 lakh, according to media reports.
Starting July 1, purchasing CNG, LNG, or high-end vehicles in the state will become costlier as the transport department implements a hike in the one-time motor vehicle (MV) tax. The increase aligns with announcements made in the state budget earlier this year.
The revised tax structure includes a 1% hike in the one-time tax for all non-transport CNG and LPG vehicles, affecting both new car buyers and auto dealers. Additionally, the state has raised the maximum cap on motor vehicle (MV) tax from ₹20 lakh to ₹30 lakh. This move is expected to generate approximately ₹170 crore in additional revenue for the 2025-26 financial year.
For example, under the revised rates, buying a CNG car worth ₹10 lakh will now attract a tax of ₹80,000, up from the previous ₹70,000. Similarly, a ₹20 lakh CNG vehicle will incur a tax of ₹1.6 lakh, compared to the earlier ₹1.4 lakh. Maharashtra currently has over 17 lakh CNG and LPG vehicles, including dual-fuel models.
In addition, light goods vehicles (LGVs) with a capacity of up to 7,500 kg will now be subject to a lump sum MV tax at 7%, a move expected to generate an additional ₹625 crore in revenue.
The revised tax rates for personal petrol and diesel vehicles remain unchanged and are as follows:
Petrol Vehicles:
Below Rs 10 lakh – 11%
Rs 10–20 lakh – 12%
Above Rs 20 lakh – 13%
Diesel Vehicles:
Below Rs 10 lakh – 13%
Rs 10–20 lakh – 14%
Above Rs 20 lakh – 15%
Imported or company-registered petrol and diesel vehicles will continue to attract a flat 20% motor vehicle tax, irrespective of their price.
On a positive note for eco-conscious buyers, electric vehicles (EVs) will remain exempt from motor vehicle tax, as part of the state’s ongoing efforts to encourage greener transportation.
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