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Maharashtra Approves Motor Vehicle Tax Overhaul to Tackle Pollution and Fund Transport Upgrades

The law channels an expected Rs 160 crore a year into road safety and modern transport systems through a five-year green levy on older vehicles.

Overview

  • The Assembly passed the Maharashtra Motor Vehicles Tax (Amendment) Bill, 2026, with unanimous support.
  • Environmental tax rates doubled to Rs 4,000 for two-wheelers, Rs 6,000 for petrol light motor vehicles, and Rs 7,000 for diesel light motor vehicles.
  • The levy will be collected as a one-time payment covering five years.
  • The government projects over Rs 160 crore in additional annual revenue earmarked for road safety, infrastructure upgrades, automated testing stations and training, and says the measure encourages shifts to BS-VI and electric vehicles.
  • A Rs 30 lakh cap on motor tax for crane vehicles is intended to ease costs for construction and infrastructure activity.