Maha Budget proposes higher green tax on older vehicles, cap on crane vehicle tax

Mumbai, March 6 (IANS) Maharashtra Chief Minister Devendra Fadnavis, in the annual Budget for 2026–27 presented on Friday in the state Assembly, proposed a slew of tax measures aimed at mobilising additional revenue.

He proposed increasing the environmental tax on vehicles in the non-transport (private) category that comply with BS-IV and below emission norms. The tax on two-wheelers will be raised from Rs 2,000 to Rs 4,000, on light motor vehicles (petrol) from Rs 3,000 to Rs 6,000, and on light motor vehicles (diesel) from Rs 3,500 to Rs 7,000.

Currently, a one-time tax of 7 per cent of the vehicle price is levied on crane-mounted vehicles. The government has proposed capping the motor vehicle tax on such vehicles at a maximum of Rs 30 lakh.

The Budget also proposes concessions in motor vehicle tax for vehicle owners opting for scrappage. While scrapping old vehicles with BS-IV and above emission norms and purchasing new vehicles, a 16 per cent concession in motor vehicle tax will be provided. For those scrapping vehicles with BS-III and below emission norms and purchasing new vehicles, a 30 per cent concession in motor vehicle tax has been proposed.

The penal provisions under Sections 59, 60, 63A and 68A of the Maharashtra Stamp Act provide for rigorous imprisonment and penalties upon conviction if an instrument is executed with insufficient stamp duty. The government has proposed revising the penalty amount from Rs 5,000 to up to Rs 1 lakh. The revision is expected to help curb the execution of instruments with insufficient stamp duty.

The Chief Minister said in his Budget speech that the state’s own tax revenue is expected to be Rs 4,09,593 crore for 2025–26 as per the revised estimates. The Budget estimate for the state’s own tax revenue has been fixed at Rs 4,15,653 crore for the financial year 2026–27. He said the Budget is based on four principles — progressive, sustainable, comprehensive and good governance.

CM Fadnavis said the revenue receipts were estimated at Rs 5,60,964 crore in the Budget estimates for 2025–26. The revised estimate of revenue receipts for the same year is Rs 6,01,489 crore. The Budget estimate of total expenditure for 2025–26 was Rs 7,00,020 crore, while the revised estimate is Rs 7,55,920 crore. The increase in total expenditure in the revised estimates is attributed to higher spending on capital and welfare schemes.

A provision of Rs 21,867 crore has been made under the District Annual Plan for the financial year 2026–27, which is higher by Rs 1,702 crore than the allocation in the previous year. In 2026–27, the outlay for scheme expenditure has been fixed at Rs 2,75,626 crore. This includes an outlay of Rs 23,150 crore for the Scheduled Caste Sub Plan and Rs 21,723 crore for the Tribal Sub Plan.

As per the Budget estimates for 2026–27, the total expenditure has been projected at Rs 7,69,467 crore. The revenue receipts are estimated at Rs 6,16,099 crore and revenue expenditure at Rs 6,55,651 crore, resulting in a revenue deficit of Rs 40,552 crore.

The Chief Minister said the state has consistently remained at the forefront of fiscal reforms. The government has succeeded in keeping the fiscal deficit below 3 per cent of the Gross State Domestic Product, as required under the Fiscal Responsibility and Budget Management (FRBM) Act. The state’s revenue deficit has also remained below 1 per cent of the Gross State Domestic Product. The fiscal deficit for 2026–27 is estimated at Rs 1,50,491 crore.

–IANS

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