Maharashtra Govt Scraps 6% Tax On EVs Above INR 30 Lakh

SUMMARY

Citing his rationale, Fadnavis said that the move will likely not generate “enough revenue” and undermine the government’s push for EVs

CM Fadnavis also asserted that the state was emerging as the “national capital” of EVs on the back of upcoming manufacturing units in Pune and Chhatrapati Sambhajinagar

Earlier this month, FM Ajit Pawar, while introducing the tax in Budget 2025-26, said that the levy would help the state generate an additional INR 170 Cr annually

The Maharashtra government has reportedly shelved a proposal to introduce a 6% “vehicle tax” on electric vehicles (EVs) priced above INR 30 Lakh.

As per news agency PTI, Maharashtra chief minister Devendra Fadnavis yesterday informed the local legislative council that the government will not implement the proposed tax. Citing his rationale, Fadnavis said that the move will not generate “enough revenue” and undermine the government’s push for EVs.

His comments came while responding to a question from Shiv Sena (UBT) leader Anil Parab during a discussion on EVs and air pollution. Raising his concerns, Parab said that the tax would prove counter-productive and “contradict” the government’s broader objective of encouraging clean mobility.

Agreeing with the member of legislative council (MLC), Fadnavis added, “It could send a wrong signal about our commitment to electric mobility. Therefore, the state government will not go ahead with the 6% tax on high-end electric vehicles”.

This comes weeks after the state government proposed a “vehicle tax” on EVs priced above INR 30 Lakh in Budget 2025-26. At the time, finance minister Ajit Pawar had said that the move would help the state government generate an additional INR 170 Cr annually.

Maharashtra’s EV Push: Addressing the legislative council during the question hour, Fadnavis also asserted that the state was emerging as the “national capital” of EVs on the back of upcoming “major” manufacturing plants in Pune and Chhatrapati Sambhajinagar.

“Maharashtra is becoming the national capital of electric vehicles. This is primarily because significant EV manufacturing plants are being established in Pune and Chhatrapati Sambhajinagar,” he added.

The CM further said that EVs were witnessing increasing adoption, adding that more than 2,500 electric buses were being added to the public transport sector in the state in a phased manner. He also said that more than 50% of newly registered vehicles in the state were now EVs.

Besides exemption from road tax and registration fees for all EVs in the state, the local government also offers subsidies and other sops to both individuals and private enterprises.

This is in line with the Centre’s larger push for clean mobility to boost EV adoption and manufacturing. Last year, the union government unveiled the INR 10,900 Cr PM E-DRIVE scheme to offer subsidies to manufacturers and shore up the local charging infrastructure.