Maharashtra government to withdraw 6% tax on EVs priced more than Rs 30 lakh

In the legislative council, the Maharashtra government announced to withdraw the six per cent tax on electric vehicles (EVs) priced above Rs 30 lakh. This was initially proposed by Deputy CM and Finance Minister Ajit Pawar in the annual budget for 2025-26.

The CM Devendra Fadnavis said the move will unlikely generate enough revenue and also undermine the government's EV push.

Key highlights

• The announcement was made during a discussion on EVs and air pollution in the Upper House, where Fadnavis was answering a question from Anil Parab, the leader of the Shiv Sena (UBT).
• The proposed levy, according to Parab, would undermine the Center's initiatives to encourage non-polluting EVs through a number of incentives.
• “The Maharashtra government's proposal to levy a 6 per cent tax on EVs above Rs 30 lakh would be counter-productive and contradict the broader objective of encouraging clean mobility,” Parab said.
• Fadnavis conceded and said the government has concluded that the tax won't generate significant revenue.
• “It could send a wrong signal about our commitment to electric mobility. Therefore, the state government will not go ahead with the 6 per cent tax on high-end electric vehicles,” he said.
• During the budget presentation on March 10, the state government proposed a 6 per cent tax on EVs above Rs 30 lakh and a one per cent tax hike on individual-owned non-transport four-wheeler CNG and LPG vehicles. 
• The move was aimed to generate an additional revenue of approximately Rs 150 crore in 2025-26. 
• The Finance Minister had also announced a 7 per cent tax on light goods vehicles (LGVs) carrying goods up to 7,500 kg, which would bring Rs 625 crore to the exchequer.

With inputs from agencies