Maharashtra Govt Increases Tax On Polluting Vehicles To Reduce Air Pollution And Promote Green Transport
Maharashtra Govt Increases Tax On Polluting Vehicles To Reduce Air Pollution And Promote Green Transport
Mumbai, March 18, 2026: In a major policy move aimed at reducing air pollution, the Maharashtra government has passed the Maharashtra Motor Vehicle Tax (Amendment) Bill, 2026, introducing higher environmental taxes on older vehicles while promoting cleaner transport options.
Announcing the decision, Transport Minister Pratap Sarnaik said the revised tax structure is designed to discourage the use of aging and polluting vehicles. The environmental tax on two-wheelers has been increased from ₹2,000 to ₹4,000, while petrol vehicles will now be taxed at ₹6,000 and diesel vehicles at ₹7,000. The tax will be collected as a one-time payment valid for five years.
Officials said the move comes amid rising concerns over deteriorating air quality in major cities such as Mumbai, Pune, and Nagpur, where vehicular emissions are a leading cause of pollution.
The government expects the revised tax rates to generate over ₹160 crore annually. These funds are likely to be used for improving road safety, upgrading transport infrastructure, implementing modern traffic systems, and enhancing driver training programs.
At the same time, the amendment offers some relief to the industrial sector. A tax cap of ₹30 lakh has been introduced for crane vehicles, a step aimed at supporting construction and infrastructure activities.
The policy also signals a broader push towards sustainable mobility. By making older vehicles more expensive to maintain, authorities hope to encourage citizens to shift towards cleaner alternatives such as BS-VI compliant and electric vehicles.
The bill received unanimous support in the state legislature, reflecting a consensus on the need to balance environmental protection with economic growth. Officials believe the measure will not only improve urban air quality but also create new opportunities in transport and infrastructure sectors across the state.
