The Maharashtra government has amended the Motor Vehicles Tax Act, introducing a major overhaul of the Green Tax structure for older vehicles and effectively doubling the levy across several categories.
The revised provisions were notified in the official gazette after receiving the Governor’s assent on April 6.
As per the new rules, non-transport vehicles completing 15 years from the date of first registration will now have to pay a higher lump-sum Green Tax for every subsequent five-year period. The rates vary depending on the vehicle type, fuel category, and emission standards.
For two-wheelers, BS-VI and newer models will attract a tax of Rs2,000, while BS-IV and older vehicles will be charged Rs4,000. Petrol-driven four-wheelers and similar vehicles will be taxed Rs3,000 for BS-VI models and Rs6,000 for older ones.
Diesel vehicles will bear the highest burden, with BS-VI models taxed at Rs3,500 and BS-IV and older vehicles at Rs7,000 for every five-year renewal after completing 15 years.
Officials said the revised framework effectively doubles the Green Tax in many segments, particularly impacting older and more polluting vehicles. The move aims to discourage the continued use of ageing vehicles and encourage a shift towards cleaner alternatives.
In a related amendment, the government has also capped the tax on cranes, setting a maximum limit of Rs30 lakh.
The changes are part of the state’s broader effort to align vehicle taxation with environmental goals while streamlining revenue collection. Transport department officials confirmed that the new rates will take immediate effect, impacting vehicle owners whose registrations cross the 15-year mark. However, authorities also noted that several vehicles are currently operating without paying the Green Tax.
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