The Maharashtra government has taken a significant step to reduce air pollution by amending the Motor Vehicle Tax Act. The recent Maharashtra Motor Vehicle Tax (Amendment) Bill 2026 has led to a substantial increase in the Environment (Green) Tax imposed on older vehicles. This change, which doubles the tax on old and polluting vehicles, is expected to have a considerable financial impact on vehicle owners.
The revised tax structure, announced officially by the state government, follows an amendment to the Motor Vehicle Tax Act passed in the state legislature during the budget session. The tax will now be imposed every 5 years once a vehicle completes 15 years from its initial registration. It will be calculated based on the vehicle type and emission standards, aiming to push owners towards eco-friendly and newer models.
Officials from the Transport Department have highlighted that these reforms are crucial in addressing the deteriorating air quality in the state. The new tax rates are determined by fuel type and BS (Bharat Stage) compliance. For Two-Wheelers meeting BS-VI or higher standards, the tax is set at Rs 2,000, while those with BS-IV or lower standards will pay Rs 4,000. Similarly, Petrol Four-Wheelers adhering to BS-VI or above standards will be charged Rs 3,000, with BS-IV or below standards facing a tax of Rs 6,000. Diesel Vehicles complying with BS-VI or higher standards will pay Rs 3,500, whereas those with BS-IV or lower standards will incur a tax of Rs 7,000.
In line with the ‘Maharashtra Electric Vehicle Policy 2025,’ the government has mandated the provision of electric vehicle (EV) charging facilities in future residential and commercial housing societies. This move aims to promote the production and use of electric vehicles to combat the health issues arising from petrol and diesel emissions. Additionally, the government has introduced a toll waiver for electric vehicles at all toll booths across the state, including the Atal Setu bridge.
