Maharashtra Government Hikes Two-Wheeler Road Tax From April

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Maharashtra Government has decided that two-wheelers will attract additional taxes from April 1, 2016, onward. The new rule will affect all manufacturers and models offered in Maharashtra. Premium two-wheeler manufacturers will be worse affected by this decision.

Policy makers have opted for a category-wise increase in taxes on two-wheelers. The tax will be more, based on the increase in cubic capacity of an engine. Only two-wheelers that are registered for personal use in Maharashtra will attract exuberant taxes.

Two-wheelers with an engine up to 99cc will have to cough up eight percent tax. Previously, it was seven percent and is increased by a single percent, as this is the mass market segment. Engines ranging from 100cc to 299cc will attract nine percent tax.

Engines that are over 300cc will attract road tax worth ten percent by the Maharashtra Government. Imported two-wheelers will also attract additional taxation. Owners will have to pay up to 10 to 20 percent in road taxes based on the model in engine displacement.

The main reason to increase the tax on two-wheelers is to gain additional revenue. The worse affected will be manufacturers like Ducati, Harley-Davidson, Triumph, Kawasaki, and MV Agusta, who import most models. The Maharashtra Government will collect this tax at the time of purchase of a new two-wheeler in the state.

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