Mumbai: Bikes, public and cargo transport vehicles like three-wheeled auto rickshaws, and cars will cost more in Maharashtra from April, with the state budget for 2016-17 proposing to increase the Motor Vehicle Tax on all vehicles.

Presenting the budget on Friday, finance minister Sudhir Mungantiwar said the government will revise the existing Motor Vehicle Tax system. “Instead of levying tax on the basis of whether the vehicle is registered as a personal vehicle or company or office vehicle, we now propose to levy Motor Vehicle Tax on the basis of the cubic capacity of the vehicles," the minister said.

Now, under the revised system, private vehicles up to 99cc will be taxed 8%; those between 100cc and 299cc 9%, and those above 300cc will be taxed 10%. Tax rates will double for all categories of vehicles if they are registered in the name of companies or offices. For instance, a company vehicle above 300cc will attract a tax rate of 20% now. The same tax structure will apply to imported vehicles depending on their displacement capacity and registration.

Currently, the state charges motor vehicle tax at 7% for private vehicles and 21% for company or office-registered vehicles.

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