The Maharashtra Legislative Assembly unanimously passed an amendment bill on Wednesday, March 18, to fight rising air pollution by increasing environmental tax on old and polluting vehicles.
The Maharashtra Motor Vehicles Tax (Amendment) Bill, 2026, aims to balance environmental protection, fiscal discipline, and industrial growth, said Transport Minister Pratap Sarnaik.
The bill increases environmental tax across vehicle categories:
| Vehicle Type | Previous Tax (₹) | New Tax (₹) | Change (₹) | Payment Type |
| Two-wheelers | 2,000 | 4,000 | +2,000 | One-time (5 years) |
| Petrol light motor vehicles | 3,000 | 6,000 | +3,000 | One-time (5 years) |
| Diesel light motor vehicles | 3,500 | 7,000 | +3,500 | One-time (5 years) |
The minister said the new tax regime is expected to bring in over INR 160 crore in extra annual revenue for the state, which will be used for road safety, modern transport infrastructure, automatic testing systems, and training.
Providing relief to the industrial sector, the bill caps motor tax on crane vehicles at ₹30 lakh, a move that is expected to boost investment in construction and infrastructure.
Measures in the bill will encourage adoption of BS-VI (India's strictest vehicle emission standards) and promote electric vehicles, strengthening the state's environmental policy and potentially generating employment in rural and tribal areas, Sarnaik noted.
He added that the bill will not impose any additional burden on the state's consolidated fund and will instead aid revenue growth.