4-Point Overview:
- Luxury cars above ₹20 lakh now face higher one-time taxes
- Tax cap revised from ₹20 lakh to ₹30 lakh, making vehicles pricier
- Commercial and CNG/LNG vehicles also see tax hikes
- EVs remain untouched — for now
Introduction:
So you’ve been eyeing that sleek German sedan or perhaps a beastly luxury SUV? Well, if you live in Maharashtra, here’s some sad news — you’ll need to shell out quite a bit more. As of July 1, 2025, the state government has revised its one-time vehicle tax structure, and the move is already raising eyebrows — and prices.
This isn’t just a small tweak. It could push the on-road cost of premium vehicles up by ₹10 lakh or more, overnight. The revised taxation affects not just luxury cars but also commercial vehicles and even CNG/LNG-powered four-wheelers. And just like that, your dream car may have slipped a bit further out of reach.
The New Tax Rule: A Game-Changer for Luxury Buyers
Maharashtra earlier capped one-time taxes based on a car’s ex-showroom value, with the maximum calculation stopping at ₹20 lakh. Now, the cap* has been increased to ₹30 lakh. The result? Luxury cars — those priced beyond ₹20 lakh — are now taxed on their full value, not just a portion of it.
Let’s take an example:
- A petrol car priced at ₹1.33 crore, registered under an individual’s name, will now attract more than ₹20 lakh in tax.
- A diesel SUV priced at ₹1.54 crore? Expect the tax bill to soar even higher.
This revision hits luxury segments hard. Essentially, if you had your heart set on a high-end machine, you’ll now need to increase your budget — significantly.
*The term “tax cap” means the maximum limit or upper boundary of tax that can be charged.
How the New Tax Structure Looks
The state government has kept the percentage slabs intact but removed the earlier benefit of capped taxable value:
- Petrol Cars:
- Below ₹10 lakh → 11% tax
- ₹10–20 lakh → 12% tax
- Above ₹20 lakh → 13% tax
- Diesel Cars:
- Below ₹10 lakh → 13% tax
- ₹10–20 lakh → 14% tax
- Above ₹20 lakh → 15% tax
- Corporate registrations? Flat 20% tax, regardless of fuel type or cost.
So, while the slabs look familiar, the base on which they’re applied has changed — and that’s the real shocker for buyers.
Commercial Vehicles and CNG/LNG Cars Hit Too
It’s not just private car buyers feeling the heat.
Vehicles like pickup trucks, tempos, and construction machines were earlier taxed based on weight. Now, they’ll be taxed based on their price. This seemingly small shift has major financial implications. For instance:
- A pickup truck worth ₹10 lakh, which earlier had a one-time tax of about ₹20,000, will now pay around ₹70,000.
CNG and LNG vehicles will also cost slightly more, with a 1% hike in tax across all brackets. While not as dramatic as the luxury car change, it’s still an added burden for transporters and commercial buyers.
Tax Structure Snapshot:
| Vehicle Type | Old Tax Method | New Tax Method | Impact |
|---|---|---|---|
| Petrol < ₹10L | 11% on ex-showroom | Same | No change |
| Petrol ₹10–20L | 12% | Same | No change |
| Petrol > ₹20L | 13% (on full price now) | Earlier capped at ₹20L | Higher tax |
| Diesel > ₹20L | 15% | Earlier capped at ₹20L | Higher tax |
| CNG/LNG | +1% in all brackets | Earlier rate +1% | Slightly higher |
| Company-registered vehicles | 20% flat | 20% flat | No change |
| Goods Vehicles (CVs) | Tax based on weight | Tax based on price | Higher cost (up to 3X more) |
| Electric Vehicles (EVs) | Tax exempt | Still exempt | No extra cost |
Conclusion: A Wake-Up Call for Premium Buyers
The state government’s goal here is simple: increase revenue and possibly discourage excessive luxury spending. But for buyers, especially those looking to upgrade in 2025, this change is a reality check. High-end vehicles just got a lot more expensive in Maharashtra.
However, there’s a silver lining — EVs remain tax-free, for now. So if you’re on the fence between a petrol-powered monster and a high-end electric SUV, now might be the perfect time to go green — and save some green, too.