Maharashtra Chief Minister Devendra Fadnavis announced that the state government will not implement the proposed 6 per cent tax on electric vehicles priced above Rs 30 lakh, citing concerns over EV adoption and revenue impact.
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The Maharashtra government has scrapped its proposal to impose a 6 per cent tax on electric vehicles (EVs) priced above Rs 30 lakh, Chief Minister Devendra Fadnavis announced in the Legislative Council on Wednesday.
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The announcement came in response to a query raised by Shiv Sena (UBT) leader Anil Parab during a discussion on EV adoption and air pollution in the Upper House. Parab argued that such a tax would contradict the Centre’s efforts to promote clean mobility and incentivise EV adoption.
“The Maharashtra government's proposal to levy a 6 per cent tax on EVs priced over Rs 30 lakh would be counterproductive and contradict the broader objective of encouraging non-polluting vehicles,” Parab stated.
According to PTI, Fadnavis acknowledged the concern and stated that after deliberation, the government concluded that the proposed tax would not generate significant revenue and could send the wrong message regarding the state's commitment to electric mobility.
“It could create the impression that we are discouraging EV adoption. Therefore, the state government will not proceed with the 6 per cent tax on high-end electric vehicles,” the Chief Minister said, as per PTI reports.
The tax had initially been proposed in the state budget for the financial year 2025-26. However, the government has now decided to prioritise policies that will enhance EV adoption rather than hinder it.
Meanwhile, Maharashtra is positioning itself as India’s leading hub for electric vehicles, with major manufacturing facilities coming up in Pune and Chhatrapati Sambhajinagar, Fadnavis said during Question Hour.
According to PTI, he highlighted that Maharashtra was fast emerging as the "national capital of electric vehicles" due to a robust manufacturing ecosystem and growing EV adoption across private and public transport sectors.
“The transition from conventional fuel-based vehicles to EVs is crucial for curbing air pollution. Vehicles running on petrol and diesel contribute significantly to pollution, and a shift to electric mobility will help address this issue,” Fadnavis stated.
The Chief Minister further informed the House that over 50 per cent of newly registered vehicles in Maharashtra are now EVs, as per PTI reports. Additionally, the government is investing in large-scale infrastructure, including an extensive network of EV charging stations across the state.
To bolster public transport electrification, more than 2,500 electric buses are being introduced in a phased manner, Fadnavis said.
(With inputs from PTI)
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