This one-time tax is levied under the provisions of the Maharashtra Motor Vehicles Tax Act (1958)
Planning to buy a new vehicle? Be prepared to shell out more money towards the one-time Motor Vehicles Tax. The state government has also decided to rationalise this charge by imposing a ceiling of Rs 20 lakh to prevent high-end and imported vehicles being registered in other states and being used in Maharashtra.
"The state government stands to lose around Rs 700 crore after octroi and Local Body Tax (LBT) were scrapped after the GST regime came into effect since July 1. To make up for this shortfall, the state cabinet has decided to increase the Motor Vehicles Tax on two and four wheelers purchased for personal use by two percentage points. This will help us generate around Rs 700 to 750 crore," said a senior transport department official.
Cars running on petrol which cost up to Rs 10 lakh will now attract a tax rate of 11 per cent, while it will stand at 12 per cent and 13 per cent for the Rs 10 lakh to 20 lakh and above Rs 20 lakh category. The new tax rates for diesel and LPG or CNG operated cars will be 13 per cent, 14 per cent and 15 per cent and 7 per cent, 8 per cent and 9 per cent.
For two-wheelers, those up to 99 CC capacity will be charged 10 per cent one-time Motor Vehicle Tax and it will be 11 per cent and 12 per cent for motorcycles in the 99.1 to 299 CC and 299.1 CC and above category.
This one-time tax is levied under the provisions of the Maharashtra Motor Vehicles Tax Act (1958).
"Due to higher taxes, many owners of high-end and imported cars register their vehicles in states like Jharkhand and Diu and Daman, thus leading to loss of revenues for us. We are capping this tax at a ceiling of 20 lakh so that the incentive for motor vehicle buyers to register the vehicle with other states will be removed," the official noted.
He added that a drive by the RTO a few months ago had detected 681 such vehicles in Mumbai alone.
"This is an attempt to rationalise the tax structure to prevent evasion due to differential rates across states," said an official from the transport commissionerate.
TAX SLAB
- Cars running on petrol which cost up to Rs 10 lakh will now attract a tax rate of 11 per cent
- The tax of 12 per cent and 13 per cent for the Rs 10 lakh to 20 lakh and above Rs 20 lakh category
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 "Motor Vehicles Tax")
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