Maharashtra Drops Proposed 6% Tax on Luxury EVs, Says CM Fadnavis
Maharashtra Chief Minister Devendra Fadnavis announced on Wednesday that the state will not move forward with the proposed 6 per cent tax on electric vehicles (EVs) priced above ₹30 lakh. The decision comes after concerns were raised about its potential impact on EV adoption and the state’s green mobility initiatives.
Tax Scrapped Amid EV Push
Speaking in the Legislative Council, Fadnavis addressed a query from Shiv Sena (UBT) leader Anil Parab, who argued that imposing a luxury EV tax would contradict the Centre’s push for clean energy transportation.
“The Maharashtra government’s proposal to levy a 6 per cent tax on EVs priced over ₹30 lakh would be counterproductive and contradict the broader objective of encouraging non-polluting vehicles,” Parab said.
Acknowledging the concerns, Fadnavis explained that the government assessed the tax’s revenue impact and concluded it would send the wrong message about Maharashtra’s commitment to EV growth.
“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 stated, as per PTI reports.
Initially introduced in the 2025-26 state budget, the tax was intended to generate additional revenue. However, the government has now opted to focus on policies that encourage electric mobility rather than hinder it.
Maharashtra’s EV Hub Aspirations
Fadnavis highlighted Maharashtra’s growing role as a national leader in EV manufacturing and adoption. With major production facilities emerging in Pune and Chhatrapati Sambhajinagar, the state is rapidly becoming a key hub for electric mobility.
“Maharashtra is fast emerging as the national capital of electric vehicles, thanks to a strong manufacturing ecosystem and increasing adoption across private and public transport sectors,” he noted.
According to PTI, over 50 per cent of newly registered vehicles in Maharashtra are now electric. To support this transition, the government is expanding the EV charging infrastructure across the state and investing in large-scale public transport electrification.
Additionally, Maharashtra is introducing 2,500 electric buses in a phased rollout to further reduce reliance on petrol and diesel vehicles.
With this policy shift, Maharashtra aims to solidify its status as a frontrunner in India’s green mobility revolution.