Our regular readers should remember that we have been reporting how Maharashtra is busy doing away with incentives for auto manufacturers and that these are considering moving out of the state. Now, in a surprise of sorts, Maharashtra has gone ahead and made a big cut on the tax levied on imported and company owned vehicles. The reason for this good move is that the Transport Authority has reportedly notified the state government about many vehicles getting registered in neighbouring states to avoid paying high tax.
The earlier tax rates in the state were 22% for petrol and 26% for diesel vehicles. The new tax rates go into effect with immediate effects.