Buying a Car This Year? Get Ready to Pay More in Taxes!

Report by The Newsage Pune.

Luxury Car Owners Face Major Economic Blow Due to Raised Automobile Taxes

Luxury Car Buyers Face a Steep 30% Tax, Common Motorists Also Affected. The Maharashtra government has increased the vehicle purchase tax by 1% in the latest state budget, impacting buyers across all segments.

The Maharashtra government increased its vehicle purchase tax rates by 1% in the latest state budget. The authorities have raised taxes of vehicles of all sorts. However, owners of luxury cars are the worst affected in this regard. This has generated the most revenue for RTO. President of the Maharashtra State Vehicle Drivers-Owners Federation has urged the government to look into the matter.

Until last year, a purchase tax of 11% was levied on four-wheelers priced up to ₹10 lakh, which has now been raised to 12%. Vehicles priced between ₹10-20 lakh will see a similar increase, while those above ₹20 lakh will now attract 13% tax. Luxury car buyers face the biggest hit, with purchase tax on high-end vehicles soaring from 20% to 30%. In Pune alone, 69,000 four-wheelers were registered last year, generating significant revenue for RTO.

Additionally, from April 1, RTO tax on light commercial vehicles will be charged at 7% of the vehicle's weight instead of a fixed amount, further burdening transport operators. Dr. Baba Shinde, President of the Maharashtra State Vehicle Drivers-Owners Federation, has urged the government to reconsider.