Maharashtra govt halts proposal to impose 6% tax on high-end EVs

Maharashtra govt has shelved proposal to levy 6% tax on high-end EVs: CM

Maharashtra Chief Minister Devendra Fadnavis on Wednesday announced that the state government will not be imposing the proposed 6% tax on electric vehicles (EVs) above Rs 30 lakh. He 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.

He made the announcement while responding to a question by Shiv Sena (UBT) leader Anil Parab on EVs and air pollution.

Parab raised concerns over the proposed tax, saying it would go against the Centre’s efforts to promote non-polluting EVs through various 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.

The Maharashtra government had proposed the tax on electric vehicles priced more than Rs 30 lakh in the budget for the financial year 2025-26.