New car and motorcycle buyers in Maharashtra will have to pay more road tax from now onward. The state cabinet has given a go-ahead on the increase of 2% of road tax. If we look at the current conditions, the road tax on petrol cars were 9-11% and for the diesel cars it was 11-13%. The amount of increase in road tax also depends on the price of the vehicles. After the hike in road tax in Maharashtra petrol cars will have to pay 11-13% road tax and  diesel cars will have to pay 13-15% road tax.

This increase in road tax is carried out because of the abolition of octroi and LBT. The state government has stated that it will bear loss of around 700 crores, due to the removal of octroi and GST. To compensate that loss Maharashtra state government has introduced this hike in tax. The government is expecting to gain Rs 750 crore at the end of the financial year once the tax starts.

If you’re thinking of registering  your imported vehicle in any other  state or union territory having less tax slab, the Maharashtra government has looked into that angle also. As per the new rul imported cars will have a tax cap of Rs 20 lakhs opposed to 20% of the vehicle cost previously. These measure are taken place to stop the buyers from registering their cars outside of the state.

The increase in road tax is gonna start right away. All the new registrations are being charge with the increase in 2% road tax in Maharashtra.  Now that GST has been applied the prices of certain cars have been reduced with the additional increase in tax the price will increase slightly and in some cases the prices will equate to the pre-GST price. In general it won’t affect the new cars buyers in Maharashtra.


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