Council sends bill to hike vehicle tax back to assembly with recommendations

Mumbai: Maharashtra’s legislative council on Friday sent back a bill to hike the motor vehicle tax to the state assembly with recommendations after opposition members raised concerns over some of the amendments. The state assembly can approve the bill with or without the council’s recommendations.

State transport minister Pratap Sarnaik tabled the bill, which aims to tax electric vehicles (EV) priced above ₹30 lakh at 6% of their cost and to increase the tax rate on private vehicles running on CNG and LPG by 1%. While Sarnaik urged the council to clear the bill, members of the Opposition insisted on speaking on the matter, which was eventually allowed.

Independent MLC Satyajeet Tambe demanded that the 6% tax on high-end EVs be scrapped. “Electrical vehicles are already expensive, and the tax would be an unnecessary burden on people,” he said. Shiv Sena (MLC) Anil Parab added that the bill contradicted the central government’s policy to promote EVs. Other members also opposed the hike in tax on CNG vehicles such as minibuses, which are used to ferry students, and two- and three-wheelers.

In response, Sarnaik said that the bill would help increase the state’s revenue by ₹1,500 crore. “There is no tax on 2-3 wheelers, and only expensive vehicles will be taxed,” he said.