The Maharashtra government on Monday announced revisions to its tax policies and revenue estimates for the financial year 2025-26. Presenting the budget, the government outlined an increase in the state’s own tax revenue and introduced new taxation measures, including an amnesty scheme for public sector undertakings and revised motor vehicle taxes.
Revenue Projections
For the financial year 2024-25, the Budget Estimate for Maharashtra’s Own Tax Revenue was initially set at Rs 3,43,040 crore, later revised to Rs 3,67,467 crore. Looking ahead, the state has proposed a further increase, setting the revenue target at Rs 3,87,674 crore for 2025-26.
Amnesty Scheme for Public Sector Undertakings
The government announced an Amnesty Scheme aimed at settling arrears of Public Sector Undertaking (PSU) companies under various state tax laws that were in effect before the implementation of the Goods and Services Tax (GST). This scheme, titled the ‘Maharashtra Settlement of Arrears of Tax, Interest, Penalty, or Late Fee (Payable by the Public Sector Undertaking Companies) Act, 2025,’ will be operational until December 31, 2025.
Changes in Motor Vehicle Taxation
The budget introduces several revisions in motor vehicle taxes, which are expected to generate additional revenue for the state.
Increase in Tax on CNG & LPG Four-Wheelers
The existing 7 per cent to 9 per cent tax on non-transport, individual-owned CNG and LPG four-wheelers will increase by 1 per cent.
This hike is projected to bring in an additional Rs 150 crore in 2025-26.
New Tax on High-End Electric Vehicles
Electric vehicles priced above Rs 30 lakh will now be subject to a 6 per cent motor vehicle tax
Increase in Maximum Motor Vehicle Tax Limit
The maximum cap on motor vehicle tax will be raised from Rs 20 lakh to Rs 30 lakh, generating an estimated Rs 170 crore in additional revenue.
New Tax on Construction Vehicles
A 7 per cent lump sum tax will be levied on vehicles used for construction—such as cranes, compressors, projectors, and excavators.
This reform is expected to contribute Rs180 crore to state revenues.
Tax on Light Goods Vehicles (LGVs)
A 7 per cent lump sum tax will be introduced for Light Goods Vehicles (LGVs) with a payload capacity of up to 7,500 kg.
This move is anticipated to generate Rs 625 crore in 2025-26.
Stamp Duty Revisions
The budget also proposes key amendments to the Maharashtra Stamp Act, including:
- Increase in Stamp Duty on Supplementary Documents: The stamp duty on supplementary documents (if multiple documents are used for a single transaction) will rise from Rs 100 to Rs 500.
- Hike in Adjudication Fees: Under Section 31 (1) of the Maharashtra Stamp Act, the adjudication fee for document verification will increase from Rs 100 to Rs 1,000. Additionally, a provision will be introduced requiring the primary stamp duty payment at the time of filing an executed document.
- Introduction of e-Stamp Certificates: To modernize the stamp duty payment system, the government plans to introduce e-Stamp Certificates under Section 10 (3) and (4) of the Maharashtra Stamp Act, allowing citizens to pay stamp duty and obtain certificates online.
A Vision for Growth
Presenting the budget, the government stated that these reforms are designed to accelerate Maharashtra’s economic growth while ensuring a balanced approach between revenue generation and development.
“This budget is an attempt to balance vision with action, fostering a faster growth cycle. It is a time for all stakeholders to come together to build a developed Maharashtra,” Maharashtra Finance Minister Ajit Pawar stated.
With these proposals, Maharashtra aims to strengthen its fiscal framework while continuing investments in infrastructure, industry, and social welfare.
