Riding old, polluting vehicles in Maharashtra will become costlier
What's the story
The Maharashtra Legislative Assembly has unanimously approved an amendment bill aimed at curbing rising air pollution by raising the environmental tax on old and polluting vehicles. The Maharashtra Motor Vehicles Tax (Amendment) Bill, 2026, was described by Transport Minister Pratap Sarnaik. He said it aims to strike a balance between environmental protection, fiscal discipline, and industrial growth.
Tax details
New tax structure for old, polluting vehicles
The new bill proposes a steep hike in environmental tax for older and polluting vehicles. Under the revised structure, two-wheelers will now attract an environmental tax of ₹4,000 instead of ₹2,000. Petrol light motor vehicles will be taxed at ₹6,000 as opposed to the previous ₹3,000, while diesel light motor vehicles will now pay a tax of ₹7,000 instead of ₹3,500.
Revenue generation
Additional revenue to be used for road safety measures
Sarnaik informed the house that the new vehicle tax regime is expected to generate over ₹160 crore in additional annual revenue for the state. This money will be used for road safety measures, modern transport infrastructure, automatic testing systems, and training programs. The minister also said that the measures in this bill would encourage adoption of BS-VI (India's strictest vehicle emission standards) and promote electric vehicles.
Industrial relief
Bill provides relief to industrial sector
The new bill also provides relief to the industrial sector by capping motor tax on crane vehicles at ₹30 lakh. This move is tipped to boost investment in construction and infrastructure projects. Sarnaik said the bill will not put any additional burden on the state's consolidated fund but will aid revenue growth instead.