Maharashtra Legislative Council on Friday passed the Maharashtra Motor Vehicles Tax Bill to increase duties on electric, CNG and LPG vehicles.
Mumbai: Maharashtra Legislative Council on Friday passed the Maharashtra Motor Vehicles Tax Bill to increase duties on electric, CNG and LPG vehicles. The bill aims to levy the tax on high-end electric vehicles (EV) above Rs 30 lakh at the rate of six per cent of the cost of the vehicles. It also aims to increase taxes on private vehicles running on CNG and LPG by one per cent. The bill was already passed by the state legislative Assembly. As the bill is passed by both the Houses, the revised taxes will be levied on the motor vehicles. The government aims to earn Rs. 150 crores for the state in 2025-26.
Participating in the discussion over the bill, NCP (SP) MLC Shashikant Shinde suggested that tax should not be equal to all and it should be based on the income of the individuals. MCL Satyajeet Tambe said that the bill is proposed against the policies of the central government and Prime Minister Narendra Modi’s vision to promote the EV. “The centre is advocating the use of EVs in the country as we spend huge money importing petrol and diesel,” he said.
Mr. Tambe said that there is no tax on EVs in any of the states in the country. If the six percent tax will be levied on the EVs, it would hamper the automobile manufacturing industries in the MIDC. “What is the reason for imposing six percent tax, when there is no tax in any state,” he asked.
Opposing the Bill, Mr. Tambe said that by increasing the tax, the use of CNG vehicles will be discouraged.
Shiv Sena (UBT) legislator Anil Parab said that the central government’s policy is to promote EVs, but the state government is just doing the opposite. On one hand, the state government is giving concessions to the EV manufacturers in the MIDC, while on the other hand, they are going to impose a tax on EVs. He suggested that there should be different slabs of taxes for the vehicles based on the total number of vehicles owned by a family.
Replying to the discussion on the Bill, transport minister Pratap Sarnaik said that the increased tax will not be levied on the common man’s vehicles. “The tax will be increased on electric vehicles (EVs) priced above Rs 30 lakh, which are high-end cars,” he said.
The amendment bill has proposed to levy a one-time tax of 7 per cent of the cost of vehicles used for construction works such as cranes, compressors, projectors, and excavators at the time of their registration. The amendment also includes a one-time 7 per cent tax levy on vehicles used for the carriage of goods or materials up to 7,500 kg.
