Maharashtra: Devendra Fadnavis govt withdraws proposed 6% tax on EVs priced above ₹30 lakh

In a major relief to electric vehicle (EV) makers, Maharashtra Chief Minister Devendra Fadnavis on Wednesday said the state government has withdrawn its proposed six per cent tax on high-end EVs (priced above ₹30 lakh).

The tax, initially introduced in the state budget for the financial year 2025-26 by Deputy Chief Minister and Finance Minister Ajit Pawar, was aimed to raise extra funds.

However, Fadnvais said the move would not generate substantial revenue and could undermine the government’s push for EV adoption.

The chief minister made the announcement while responding to a question by Shiv Sena (UBT) leader Anil Parab during a discussion on EVs and air pollution in the state assembly.

Parab raised concerns over the proposed tax, arguing that it would contradict the Centre’s efforts to promote non-polluting electric vehicles through various incentives.

“The Maharashtra government’s proposal to levy a six per cent tax on EVs above ₹30 lakh would be counter-productive and contradict the broader objective of encouraging clean mobility,” the Shiv Sena (UBT) leader said.

Tax on EVs won’t generate significant revenue

Fadnavis replied that the government has concluded that the tax will not generate significant revenue.

“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,” he added.

Fadnavis also said the shift from conventional vehicles to EVs will reduce air pollution.

Maharashtra emerging as India’s EV capital

“Maharashtra is becoming the national capital of electric vehicles. This is primarily because significant EV manufacturing plants are being established in Pune and Chhatrapati Sambhajinagar,” Chief Minister Devendra Fadnavis said.

"Maharashtra is becoming national capital of electric vehicles. This is primarily because significant EV manufacturing plants are being established in Pune and Chhatrapati Sambhajinagar," he said.

"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 added.

Fadnavis further said that both private and public transport sectors are increasingly adopting EVs and more than 2,500 electric buses are being added to the public transport sector in the state in a phased manner.

"The number of electric vehicles being registered in the state is steadily rising. Over 50 per cent of newly registered vehicles are now EVs," he added.

The Maharashtra government was also building supporting infrastructure, including a large-scale EV charging network across the state, the CM informed.