March 27th, 2025
Maharashtra has abandoned its controversial proposal to impose a 6% tax on high-end electric vehicles. Chief Minister Devendra Fadnavis announced this decision on Wednesday. He explained that the tax could undermine the state’s push for clean mobility.
Why the Government Changed Course
The proposed tax would have applied to EVs priced above ₹30 lakh. However, it faced strong pushback from automakers and environmental advocates. Fadnavis admitted that the revenue generated would have been minimal. Additionally, it might have sent the wrong message about Maharashtra’s commitment to electric mobility.
“We realized we were discouraging EVs without justification,” Fadnavis explained during a legislative council session. “Therefore, this move could have suggested we’re against EV adoption, which is far from the truth.”
Maharashtra’s Electric Ambitions Grow Stronger
The tax reversal aligns with Maharashtra’s broader strategy to position itself as India’s EV hub. Furthermore, Fadnavis highlighted the state’s impressive progress:
- Over 50% of newly registered vehicles in Maharashtra are now electric
- The state is adding 2,500 electric buses to public transport fleets
- Major EV manufacturing plants are currently under development in Pune and Chhatrapati Sambhajinagar
Revenue Plans Shift to Other Vehicles
While the government has shelved the luxury EV tax, other budget changes will still proceed from April 1, 2025. Consequently, these include:
- 1% tax increase on CNG and LPG vehicles
- 7% tax on construction and light goods vehicles
As a result, these measures will generate additional revenue without hampering the state’s EV goals.
Manufacturers Welcome the Decision
Automakers and industry experts have welcomed this decision. For instance, Tata Motors, a key EV player in Maharashtra, called it “a positive step towards accelerating EV adoption in India.”
In conclusion, as Maharashtra moves forward with its EV ambitions, the scrapping of this tax shows the government’s willingness to adapt policies. Thus, they continue to support a cleaner, electric future on India’s roads.
