Vehicles to become dearer in Maharashtra, while petrol price reduced in Goa

Wednesday 28 March 2012, 12:20 PM by

After the Union Budget resulted in hike in car prices across the country, the Maharashtra state budget will also raise costs of vehicles this year. The state government has proposed an increase on the taxes levied on petrol and diesel vehicles for the 2012 budget. The industry can expect a 4 per cent rise in the tax rates of diesel cars and utility vehicles, whereas the cess on petrol vehicles is expected to go up by 2 per cent.

Prices of vehicles will regulate the hike to be applied on them in the state of Maharashtra. Presently, models costing up to Rs. 7 lacs attract 7 per cent taxes, while those priced Rs. 7 to 20 lacs are taxed at 8 per cent. On the other hand, 9 per cent tax is levied on vehicles that cost more than Rs. 20 lacs in Maharashtra.

The state government is also raising the taxes on CNG and LPG resources, due to which the cost of both of these eco-friendly fuels will go up. However, CNG vehicles will enjoy a few concessions from the Maharashtra government, including revised base tax rate of 5 per cent for CNG-powered models priced up to Rs. 10 lacs. On the other hand, vehicles that cost up to Rs. 10 lacs and Rs. 20 lacs will be taxed at base rate of 6 and 7 per cent, respectively.

Goa, a neighbouring state of Maharashtra, has proposed a decline in petrol prices, which will appease the residents. Manohar Parrikar, the new Chief Minister of the state, has said that petrol prices will come down by Rs. 11 from April 2, 2012. This has been done by lowering the VAT applicable on the fuel by 0.1 per cent. Therefore, Goa will have the least petrol prices in the country, Rs. 55, from coming Monday.