Starting July 1, CNG vehicles are set to become more expensive in Maharashtra as the state implements its revised motor vehicle tax policy. Key changes come in the form of a tax rate hike for new CNG vehicles – limited to only privately registered cars, as well as an increase in the maximum limit of the state motor vehicle tax, which in turn will affect luxury car buyers.
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Starting with CNG cars, the state government has hiked the motor vehicle tax rate on private-use cars by 1 per cent. Commercial use vehicles are not affected. Private use CNG vehicles were previously attracted a one-time state motor vehicle tax between 7 and 9 per cent based on the vehicle’s price.
Private use CNG vehicles were previously taxed between 7 and 9 per cent based on price.
On the luxury car front, too, buyers can expect to pay more for their new purchases. While the motor vehicle tax rates and slabs have remained unchanged, the state government has increased the maximum payable amount under the motor vehicle tax from Rs 20 lakh up to Rs 30 lakh.
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Presently, petrol cars priced up to Rs 10 lakh attract a one-time tax of 11 per cent, with vehicles priced between Rs 10 lakh and Rs 20 lakh requiring a 12 per cent tax payment. Vehicles priced over Rs 20 lakh are taxed at 13 per cent. Similarly, for diesel, the cars are taxed at 13 per cent, 14 per cent and 15 per cent respectively. Imported vehicles attract a flat 20 per cent tax.
Higher maximum tax limit will affect high-end luxury car buyers who will now need to pay higher tax on their new vehicles.
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As an example, a locally assembled luxury petrol car worth Rs 1.8 crore taxed at 13 per cent would amount to a total tax due of Rs 23.40 lakh. Under the older tax limit, the buyer would only be required to pay Rs 20 lakh in motor vehicle taxes. Now, however, the same buyer will be required to pay the full tax amount or Rs 3.40 lakh more.
With inputs from PTI
