Maharashtra Govt Drops Plan to Tax Luxury EVs Over ₹30 Lakh

In a significant move favouring electric vehicle (EV) manufacturers, Maharashtra Chief Minister Devendra Fadnavis announced the rollback of the proposed six per cent tax on high-end electric vehicles priced above ₹30 lakh. 

The decision, declared during a legislative session on Wednesday, marks a strategic pivot from a policy initially introduced in the 2025–26 state budget by Deputy Chief Minister and Finance Minister Ajit Pawar.

The proposed levy was designed to generate additional revenue but sparked concerns over its potential to discourage the adoption of non-polluting vehicles.

Minimal Revenue Impact and Potential Harm to EV Adoption

While addressing the concerns, CM Fadnavis stated that after due consideration, the government concluded that the proposed tax would not yield substantial revenue. More importantly, it could undermine the administration’s ongoing efforts to promote electric mobility across the state.

“It could send a wrong signal about our commitment to electric mobility. Therefore, the state government will not go ahead with the six per cent tax on high-end electric vehicles,” Fadnavis clarified.

He further emphasised that facilitating a shift from traditional fuel-based vehicles to electric alternatives is essential for tackling air pollution—a pressing issue in the state’s urban centres.

Maharashtra’s Aspiration to Be India’s EV Capital

Highlighting the state’s ambition to become the country’s electric vehicle capital, Fadnavis pointed to rapid advancements in EV manufacturing hubs located in Pune and Chhatrapati Sambhajinagar. These industrial centres are witnessing a surge in investments and production activity, reinforcing Maharashtra’s lead in the sector.

“The contribution of vehicles (running on petrol or diesel) to air pollution is the highest. A shift towards electric vehicles will help reduce this problem,” the Chief Minister noted.

Rise in EV Adoption Across Public and Private Transport

Maharashtra is witnessing a steady rise in EV registrations, with electric vehicles now accounting for over 50 per cent of newly registered vehicles in the state. The transition is not limited to private ownership. The public transport sector is also embracing the shift, with over 2,500 electric buses being introduced in phases to modernise the fleet and lower emissions.

This increased adoption is backed by robust government support and a growing consumer preference for sustainable transport alternatives.

Building the Backbone: EV Infrastructure Expansion

Recognising that infrastructure plays a critical role in accelerating EV adoption, the Maharashtra government is investing in an extensive electric vehicle charging network across the state. This large-scale deployment aims to reduce range anxiety, improve accessibility, and ensure a seamless experience for EV users.

Conclusion

With a combination of policy support, infrastructure expansion, and industrial development, Maharashtra is laying a solid foundation for a future driven by clean mobility.

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