Vehicle Purchases to Become Costlier: Environmental Tax Doubled; Maharashtra Motor Vehicles Tax (Amendment) Bill Passed Unanimously

Mumbai: The Maharashtra Motor Vehicles Tax (Amendment) Bill, 2026, was unanimously passed in the State Legislature today. This bill is set to play a pivotal role in striking a balance between environmental protection, fiscal discipline, and industrial development within the state. Transport Minister Pratap Sarnaik announced that, through this legislation, a decision has been taken to increase the environmental tax on old and polluting vehicles in an effort to curb rising air pollution.

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The environmental tax has been revised as follows: for two-wheelers, it has been raised from ₹2,000 to ₹4,000; for petrol vehicles, from ₹3,000 to ₹6,000; and for diesel vehicles, from ₹3,500 to ₹7,000. This tax will be levied as a one-time payment for a five-year period. This revised tax structure is expected to generate over ₹160 crore in additional annual revenue for the state; these funds will be utilized for road safety initiatives, modern transport facilities, Advanced Traffic Management Systems (ATS), and training programs.

Furthermore, providing relief to the industrial sector, a cap of ₹30 lakh has been fixed as the maximum limit for the motor vehicles tax applicable to crane vehicles. This measure is expected to boost investment within the construction and infrastructure sectors. The bill is also intended to encourage citizens to adopt BS-6 compliant and electric vehicles, thereby strengthening the state’s environmental policy. Additionally, it is anticipated that this legislation will lead to increased annual job creation, particularly in rural and tribal regions. Significantly, this bill will not impose any additional burden on the State’s Consolidated Fund; on the contrary, it is expected to contribute to revenue growth. Members from all political parties within the House welcomed the bill and granted it unanimous approval. Consequently, this decision marks a significant milestone in the state’s holistic development. Significantly, this Bill will not impose any additional burden on the State’s Consolidated Fund; on the contrary, it will facilitate revenue growth. Members from all parties in the House welcomed the Bill and unanimously accorded their approval, thereby marking this decision as a pivotal milestone in the comprehensive development of the State. This was asserted by Minister Pratap Sarnaik.