Nagpur/Mumbai: 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electric vehicle (EV) makers, Maharashtra Chief Minister Devendra Fadnavis on Wednesday said the State Government has withdrawn its proposed six per cent tax on high-end EVs, priced above ₹30 lakh.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, Fadnavis said the move would not generate substantial revenue and could undermine the government’s push for EV adoption.
Gold Rate
Monday 31March 2025
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 Council.
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
The decision to tax high-end EVs was announced in the state budget on March 10, days after American EV giant Tesla took up 4,000 sq ft of showroom space in the Bandra Kurla Complex. The Opposition protested against the decision during the budget session, which concluded on Wednesday.
Fadnavis replied that his Cabinet earlier felt expensive EVs should be taxed. However, during a discussion on Monday, senior ministers said that taxing luxury EVs would not generate much revenue. “Hence, we can announce a rollback, and there was no need to disincentivise,” he said.
The Chief Minister also said that people are mostly buying two-wheeler EVs, even as the state continues to grow its network of charging stations. Both private and public transport sectors are increasingly adopting EVs, with more than 2,500 electric buses being added to the public transport sector in the state in a phased manner, he added.
“The number of electric vehicles being registered in the state is steadily rising. Over 50% of newly registered vehicles are now EVs,” he said, adding that EV manufacturing plants are being established in Pune and Chhatrapati Sambhajinagar.
Shiv Sena MLC Manisha Kayande later advised the State Government to buy EVs for ministers, adding that Mumbai’s Municipal Commissioner Bhushan Gagrani was the only IAS officer in the city who uses an EV. Replying to this, Fadnavis assured that he and his ministers would get EVs in a phased manner.
