Maharashtra’s Vehicle Tax: New luxury cars in Mumbai to now cost up to ₹10 lakh more

After being ranked the least affordable city in India, where even top 5% earners would need over a century of savings to buy an average home, Mumbai is about to see another pinch. Starting July 1, buying a car in Maharashtra will come with a much steeper price tag, as the state enforces revised one-time motor vehicle taxes. The hike will impact luxury cars, CNG/LNG vehicles, and even goods carriers, with costs rising by up to ₹10 lakh for buyers.

• Increased Tax Ceiling

  - Maximum tax cap raised from ₹20 lakh to ₹30 lakh

  - Affects high-value vehicle purchases significantly

• Luxury Car Taxation
  Petrol Vehicles:

  -Below ₹10 lakh: 11%

  -₹10-20 lakh: 12%

  -Above ₹20 lakh: 13%

  Diesel Vehicles:

  -Below ₹10 lakh: 13%

  -₹10-20 lakh: 14%

  -Above ₹20 lakh: 15%

• CNG/LNG Vehicles

  -Across-the-board 1% tax increase
  Example: ₹10 lakh CNG car tax up from ₹70,000 to ₹80,000

• Commercial Vehicles

  -New 7% flat rate on purchase price

  -Replaces previous weight-based calculation
  

• Imported/Company Vehicles

  -Flat 20% tax remains unchanged

• Electric Vehicle Incentives

  -Complete tax exemption continues

  -No 6% tax on EVs above ₹30 lakh (previously proposed)

The changes aim to:

- Generate additional ₹170 crore state revenue

-Encourage shift to electric mobility

-Standardise taxation across vehicle categories

Note: Existing vehicle owners not affected; the changes apply only to new registrations.

In a city where even doctors and engineers would need generations to buy a home, Maharashtra has now turned car ownership, the classic middle-class dream, into yet another luxury for the privileged few. The basics aren’t just expensive anymore, they’re becoming exclusive. Netizens say that the Maharashtra dream now demands one of two things: patience beyond reason, or wealth beyond imagination.