From July 1, 2025, the Maharashtra government has significantly raised the registration and road tax rates for premium vehicles. High-end cars and motorcycles priced above a specified threshold will now incur 5–10% higher tax rates, making luxury vehicles notably more expensive for buyers in the state.
💰 Who Is Impacted?
Affected vehicles include:
Luxury cars with ex-showroom price above ₹50 lakhs
Select premium SUVs and EVs (starting price above ₹40 lakhs)
High-end motorcycles above ₹5 lakhs
Both private and commercial buyers in Maharashtra
📈 Why the Tax Hike?
The state government cites multiple objectives:
Boost state revenue to fund infrastructure and social welfare programs
Discourage high-value luxury purchases and curb conspicuous consumption
Promote sustainable transportation, nudging buyers toward greener options
💸 Estimated Price Impact
| Vehicle Segment | Previous Tax Rate | New Tax Rate | Price Increase on ₹60L car |
|---|---|---|---|
| Luxury Car | 10% | 15% | +₹3 lakh |
| Premium EV/SUV | 5% | 10% | +₹2 lakh |
| High-End Bike | 8% | 13% | +₹15,000 |
Prices may vary slightly depending on exact ex-showroom value and tax calculation methodology.
🧭 What Buyers Should Know
Registration delay: Vehicle purchases before July 1 are still charged at older tax rates.
Existing vehicles unaffected: This applies only to new registrations post commencement.
Choice of state registration: Some buyers may explore RTO registration in neighbouring states with lower tax slabs.
🌱 Green Bonus?
The government is simultaneously offering rebates for fully electric vehicles (EVs). Buyers of EVs under ₹50 lakhs may still receive up to ₹1 lakh in incentives, under specific schemes.
🙋 FAQ – Maharashtra Luxury Vehicle Tax Hike
Q1: When will these higher taxes take effect?
A: Starting July 1, 2025, on all high-end vehicle registrations.
Q2: Which vehicles are affected?
A: Luxury cars above ₹50 lakhs, premium EVs/SUVs above ₹40 lakhs, and high-end bikes above ₹5 lakhs.
Q3: How much more will I pay?
A: Luxury vehicle registration could cost ₹2–3 lakh extra, depending on value and category.
Q4: Do EV rebates still apply?
A: Yes, EV buyers may claim up to ₹1 lakh rebate, subject to scheme guidelines.
Q5: Can I register a vehicle in another state?
A: Yes, but it may involve additional logistics and legal considerations.
published on 1st july
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