Maharashtra Scraps 6% Tax on Luxury EVs to Boost Green Mobility

Mumbai: The Maharashtra government has revoked its decision to impose a 6% tax on electric vehicles (EVs) priced above ₹30 lakh, following strong opposition from stakeholders. The announcement was made by Chief Minister Devendra Fadnavis in the state legislative council on Wednesday.

Government Reverses Tax Proposal

The 6% tax proposal was introduced as part of the 2025-26 state budget by Deputy Chief Minister and Finance Minister Ajit Pawar to generate additional revenue. However, the move was met with criticism from automobile manufacturers and experts, who argued that it contradicted the state’s efforts to promote electric mobility and combat pollution.

During a discussion in the legislative council, Shiv Sena (UBT) leader Anil Parab raised concerns over the tax, stating that it discouraged the transition to cleaner vehicles.

CM Fadnavis Explains Decision

Responding to the debate, CM Fadnavis clarified that the tax would not significantly contribute to revenue but could hinder EV adoption. “The tax might send the wrong message that the government is against electric vehicles. Therefore, we have decided to withdraw the 6% tax on high-end EVs,” he stated.

Other Budgetary Tax Changes from April 1, 2025

Although the EV tax has been scrapped, the Maharashtra government has confirmed that other tax modifications will take effect from April 1, 2025:

• 1% increase in tax on CNG and LPG vehicles
• 7% tax on construction and light goods vehicles

Maharashtra Strengthens EV Push

Maharashtra is positioning itself as a key hub for electric vehicles, with new EV manufacturing facilities coming up in Pune and Chhatrapati Sambhaji Nagar. The state is witnessing a sharp rise in EV registrations, with electric vehicles now comprising more than 50% of new registrations.

To further boost EV adoption, the state government is:

• Expanding charging infrastructure across Maharashtra
• Deploying 2,500 electric buses for public transport in phases

CM Fadnavis emphasized that accelerating EV adoption is crucial in tackling air pollution, as petrol and diesel vehicles remain major contributors to environmental degradation.