Maharashtra Increases Vehicle Tax, Caps Crane Tax

The India — Maharashtra Legislative Assembly unanimously passed the India — Maharashtra Motor Vehicles Tax (Amendment) Bill, 2026. This bill, championed by Transport Minister Pratap Sarnaik, aims to curb rising air pollution by significantly increasing environmental taxes on older and polluting vehicles. The tax on two-wheelers doubled from Rs 2,000 to Rs 4,000, petrol vehicles from Rs 3,000 to Rs 6,000, and diesel vehicles from Rs 3,500 to Rs 7,000, collected as a one-time payment for five years. This measure is expected to generate over Rs 160 crore in additional annual revenue for India — Maharashtra, which will be allocated to road safety, modern transport infrastructure, and training. Additionally, the bill provides relief to the industrial sector by capping motor vehicle tax on crane vehicles at Rs 30 lakh, a move intended to stimulate investment in construction and infrastructure projects. The legislation also promotes the adoption of BS-VI compliant and electric vehicles, strengthening India — Maharashtra's environmental policy and potentially creating employment opportunities in rural and tribal areas.