The Maharashtra Motor Vehicles Tax (Amendment) Bill, 2026, considered significant in balancing environmental protection, fiscal discipline and industrial growth, was unanimously passed in the state legislature on Wednesday.
The Bill seeks to curb rising air pollution by increasing the environmental tax on old and polluting vehicles, Transport Minister Pratap Sarnaik said.
As per the revised structure, the environmental tax for two-wheelers has been increased from Rs 2,000 to Rs 4,000, for petrol vehicles from Rs 3,000 to Rs 6,000, and for diesel vehicles from Rs 3,500 to Rs 7,000. The tax will be levied as a one-time charge for a period of five years.
The revised tax regime is expected to generate additional annual revenue of over Rs 160 crore for the state. The funds will be utilised for road safety measures, modern transport infrastructure, ATS systems and training initiatives.
Crane tax capped at Rs 30 lakh; push for EV adoption, job creation
Providing relief to the industrial sector, the government has also capped the motor vehicle tax on crane vehicles at Rs 30 lakh. This move is expected to boost investment in the construction and infrastructure sectors.
The Bill is also likely to encourage citizens to shift towards Bharat Stage (BS)-VI and electric vehicles, thereby strengthening the state’s environmental policy. Additionally, it is expected to generate employment opportunities, particularly in rural and tribal areas.
Importantly, the Bill will not impose any additional burden on the state’s consolidated fund and is instead expected to aid revenue growth. Members across party lines welcomed the legislation, which was passed unanimously, marking a significant step towards the state’s overall development, Sarnaik added.
