Synopsis
Maharashtra Chief Minister Devendra Fadnavis has announced the withdrawal of a proposed six percent tax on electric vehicles over ₹30 lakh, initially suggested by Deputy CM Ajit Pawar, amidst concerns about promoting eco-friendly transportation.Key Takeaways
- Withdrawal of the 6% tax on EVs above ₹30 lakh.
- Decision made following stakeholder concerns.
- Tax seen as contradictory to EV promotion goals.
- Focus on encouraging electric mobility.
- Expected revenue generation was minimal.
Mumbai, March 26 (NationPress) Maharashtra Chief Minister Devendra Fadnavis declared on Wednesday during a state council meeting that the government has opted to eliminate the six percent tax on electric vehicles (EVs) valued above ₹30 lakh. This decision was initially suggested by Deputy CM and Finance Minister Ajit Pawar in the annual budget for 2025-26.
The chief minister made this declaration while addressing inquiries from Shiv Sena (UBT) legislator Anil Parab regarding EVs and environmental concerns.
Deputy CM Ajit Pawar mentioned that the six percent tax on EVs exceeding ₹30 lakh was intended to generate additional revenue. However, the automotive sector and various stakeholders urged the state government to retract this tax, particularly as both the central and state governments are advocating for the adoption of EVs to combat pollution.
Parab expressed his worries about the proposed tax, which was set to take effect on April 1.
He stated, “The Centre is actively promoting EVs by offering a variety of incentives. The state government’s plan to impose a six percent tax on EVs over ₹30 lakh would be detrimental and contradict the overarching goal of fostering pollution-free and clean transportation.”
The chief minister concluded that the tax would not generate significant revenue and could convey a misleading message about our dedication to electric mobility. As a result, the state government will proceed without implementing the six percent tax on EVs priced above ₹30 lakh, he added.
During the budget presentation on March 10, the state government proposed a 6 percent tax on EVs above ₹30 lakh and a one percent tax hike on privately-owned non-transport CNG and LPG vehicles. This initiative aimed to raise about ₹150 crore in 2025-26. Additionally, the Finance Minister announced a 7 percent tax on light goods vehicles (LGVs) transporting goods up to 7,500 kg, which is expected to contribute ₹625 crore to the state treasury.
