Mumbai, March 26 Maharashtra Chief Minister Devendra Fadnavis announced on Wednesday in the state council that the government has decided to withdraw the six per cent tax on electric vehicles (EVs) priced above Rs 30 lakh, as was initially proposed by Deputy CM and Finance Minister Ajit Pawar in the annual budget for 2025-26.
The chief minister made this announcement while responding to a question by Shiv Sena(UBT) legislator Anil Parab during a discussion on EVs and air pollution.
Deputy CM Ajit Pawar had said that the six per cent tax on EVs priced above Rs 30 lakh was part of its move to mop up additional revenue. However, the auto industry and other stakeholders had urged the state government to withdraw the 6 per cent tax, especially when the Centre and the state government are promoting the use of EVs to address the pollution issue.
Parab raised concerns over the proposed tax which would have been effective from April 1.
He said, “The Centre is actively encouraging EVs by providing a slew of incentives. The state government’s proposal to level a six per cent tax on EVs above Rs 30 lakh would be counter productive and it would be contradictory to the broader objective of promoting pollution free and clean mobility.”
The chief minister said that the government arrived at a conclusion that the tax would not mobilise substantial revenue and could send the wrong signal about our commitment to electric mobility. Therefore, the state government will not go ahead with the six per cent tax on EVs priced above Rs 30 lakh, he added.
During the budget presentation on March 10, the state government proposed a 6 per cent tax on EVs above Rs 30 lakh and a one per cent tax hike on individual-owned non-transport four-wheeler CNG and LPG vehicles. The move was aimed to generate an additional revenue of approximately Rs 150 crore in 2025-26. The Finance Minister had also announced a 7 per cent tax on light goods vehicles (LGVs) carrying goods up to 7,500 kg, which would bring Rs 625 crore to the exchequer.
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