The Maharashtra government is considering a proposal to double the vehicle tax on car owners buying a second vehicle and to levy a special cess of Rs. 5-10 per litre of petrol or diesel on private cars. The proposal, aimed to decrease the use of private vehicles and reduce traffic congestion, will be applicable to car owners in the Mumbai Metropolitan Region. The funds generated will be given to the BEST for the procurement of new buses and development of infrastructure in the Mumbai region. The additional tax will also be utilised for the development of mass transit system. Currently, the Maharashtra transport department charges a one-time vehicle tax, which is around 10% of a car?s cost. With the second vehicle, this will go up to 20%.
