Motor vehicle tax in Maharashtra will be hiked effectively from April onwards. The government has proposed an increase on duty based on the vehicle’s engine cubic capacity. All vehicle types - bikes, cars, auto rickshaws and public or cargo transport vehicles will cost more.
Speaking on the occasion to LiveMint, Maharashtra finance minister Sudhir Mungantiwar, said, “Instead of levying tax on the basis of whether the vehicle is registered as a personal vehicle or company or office vehicle, we now propose to levy Motor Vehicle Tax on the basis of the cubic capacity of the vehicles.”
Vehicles powered by engine up to 99cc will pay 8 per cent, while vehicles featuring engines between 100cc-299cc will pay about 9 per cent. For vehicles with engine displacement of over 300cc, 10 per cent tax would be applicable. As for vehicles registered with the company, they will have to pay double amount as taxes.
Potential customers who have been planning on purchasing a new vehicle shall end up paying a higher price. As for now, 7 per cent charge is levied on private vehicles and company registered vehicles pay about 21 per cent charge.
