Maharashtra: Motor vehicle tax to be raised

It's becoming an increasingly expensive affair to buy and own a vehicle and it doesn't look like the Government of Maharashtra is looking to do new vehicle buyers any favours. The Motor Vehicle Tax in Maharashtra is set to rise from April as the government has proposed an increase with the duty being levied based on the cubic capacity of the vehicle's engine.

“Instead of levying tax on the basis of whether the vehicle is registered as a personal vehicle or company or office vehicle, we now propose to levy Motor Vehicle Tax on the basis of the cubic capacity of the vehicles,” said Maharashtra finance minister Sudhir Mungantiwar. Currently, the charge levied is 7% for private vehicles and 21% for company registered vehicles.

Under the revised, engine size-based system, private vehicles displacing up to 99cc will be taxed 8%, while those displacing between 100cc - 299cc will be taxed 9%. Vehicles displacing 300cc and above will be taxed 10%. For company registered vehicles and imported vehicles, all the mentioned taxes will double.

Source: Livemint

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