Maharashtra hikes tax on CNG vehicles by 1%, additional 6% tax on select EVs; shares of car makers, MGL fall

The shares of EV and CNG vehicle makers, along with related OEMs fell on March 10 as Maharashtra announced a hike in the motor tax levied on compressed natural gas (CNG) and PNG four wheelers by one percent.

This is expected to generate Rs 150 crore in additional revenue for the state in the upcoming financial year. Currently, the motor vehicle tax levied on such cars ranges between 7 to 9 percent, based on vehicle and price.

An additional 6 percent tax on electric vehicles prices above Rs 30 lakh was also announced as part of the state's annual Budget unveiled by the state Finance Minister Ajit Pawar. This is expected to generate an additional Rs 170 crore in revenue for the state in the upcoming financial year.

Notably, the budget also proposed to impose 7 percent motor vehicle tax on vehicles used for construction work and light goods carrying vehicles. This is expected to generate Rs 625 crore in additional revenue for the state in FY26.