This certainly isn’t the best of the times for buying a car. We have been busy reporting about the increased prices of cars in India, all thanks to the increase in excise duty in Union Budget and the manufacturers passing on the additional burden on to the car buyers. Now, the recent news is that buying a car in Maharashtra will cost more now owing to the Maharashtra government‘s decision to increase the tax on cars sold in the state. While the tax levied on diesel cars will increase by 4%, petrol vehicles will go up by 2%.
And if this alone was not enough, CNG and LPG prices too will head north. This is owing to another decision of government that will see natural gas coming to state attracting a 12.5% tax. LPG too will now attract a new 5% tax.
“The new tax rate will be 5% for CNG vehicles costing up to Rs 10 lakh, 6% for vehicles costing between Rs 10 lakh and Rs 20 lakh and 7% for above Rs 20 lakh,” he said. “Though sales tax targets have been exceeded this year, excise collection has not shown a similar trend. Keeping in mind some factors that have been responsible for lesser recovery of taxes, we have kept the burden of new taxes as low as possible this time,” said Ajit Pawar, Deputy Chief Minister.