Maharashtra govt unveils tax reforms and revenue projections in Budget 2025-26

The Maharashtra government on Monday announced revisions to its tax policies and revenue estimates for the financial year 202526 Presenting the budget the government outlined an increase in the statersquos own tax revenue and introduced new taxation measures including an amnesty scheme for public sector undertakings and revised motor vehicle taxesRevenue ProjectionsFor the financial year 202425 the Budget Estimate for Maharashtrarsquos Own Tax Revenue was initially set at Rs 343040 crore later revised to Rs 367467 crore Looking ahead the state has proposed a further increase setting the revenue target at Rs 387674 crore for 202526Amnesty Scheme for Public Sector UndertakingsThe 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 lsquoMaharashtra Settlement of Arrears of Tax Interest Penalty or Late Fee Payable by the Public Sector Undertaking Companies Act 2025rsquo will be operational until December 31 2025Changes in Motor Vehicle TaxationThe budget introduces several revisions in motor vehicle taxes which are expected to generate additional revenue for the state1 Increase in Tax on CNG amp LPG FourWheelersbull The existing 7 per cent to 9 per cent tax on nontransport individualowned CNG and LPG fourwheelers will increase by 1 per centbull This hike is projected to bring in an additional Rs 150 crore in 2025262 New Tax on HighEnd Electric Vehiclesbull Electric vehicles priced above Rs 30 lakh will now be subject to a 6 per cent motor vehicle tax3 Increase in Maximum Motor Vehicle Tax Limitbull 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 revenue4 New Tax on Construction Vehiclesbull A 7 per cent lump sum tax will be levied on vehicles used for constructionmdashsuch as cranes compressors projectors and excavatorsbull This reform is expected to contribute Rs180 crore to state revenues5 Tax on Light Goods Vehicles LGVsbull A 7 per cent lump sum tax will be introduced for Light Goods Vehicles LGVs with a payload capacity of up to 7500 kgbull This move is anticipated to generate Rs 625 crore in 202526Stamp Duty RevisionsThe budget also proposes key amendments to the Maharashtra Stamp Act includingbull 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 500bull 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 1000 Additionally a provision will be introduced requiring the primary stamp duty payment at the time of filing an executed documentbull Introduction of eStamp Certificates To modernize the stamp duty payment system the government plans to introduce eStamp Certificates under Section 10 3 and 4 of the Maharashtra Stamp Act allowing citizens to pay stamp duty and obtain certificates onlineA Vision for GrowthPresenting the budget the government stated that these reforms are designed to accelerate Maharashtrarsquos economic growth while ensuring a balanced approach between revenue generation and developmentldquoThis 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 Maharashtrardquo Maharashtra Finance Minister Ajit Pawar statedWith these proposals Maharashtra aims to strengthen its fiscal framework while continuing investments in infrastructure industry and social welfare