Maharashtra Chief Minister Devendra Fadnavis, during the annual Budget presentation for 2026–27 in the state Assembly, suggested various tax changes to boost revenue. One proposal includes raising the environmental tax on non-transport vehicles meeting BS-IV and lower emission standards. For instance, the tax on two-wheelers would increase from Rs 2,000 to Rs 4,000. Light motor vehicles using petrol would see their tax go up from Rs 3,000 to Rs 6,000, and for diesel vehicles, from Rs 3,500 to Rs 7,000.
Moreover, the Budget outlines tax concessions for vehicle owners who choose to scrap their old vehicles. Those opting to scrap vehicles with BS-IV and higher emission standards and purchasing new ones would receive a 16% tax concession. On the other hand, individuals scrapping vehicles with BS-III and lower emission standards and buying new ones could benefit from a 30% tax concession.
Additionally, the Budget proposes adjustments in the motor vehicle tax for crane-mounted vehicles, limiting the tax to a maximum of Rs 30 lakh. There are also plans to revise penalty amounts under certain sections of the Maharashtra Stamp Act, aiming to deter the execution of instruments with insufficient stamp duty. The penalty could be increased from Rs 5,000 to a maximum of Rs 1 lakh.
In his Budget speech, CM Fadnavis highlighted that the state’s own tax revenue is anticipated to reach Rs 4,15,653 crore for the fiscal year 2026–27. The Budget is structured around principles of progressiveness, sustainability, comprehensiveness, and good governance. The state has maintained its fiscal discipline with the fiscal deficit projected to remain below 3% of the Gross State Domestic Product, as mandated by the FRBM Act.
