In a big relief for electric vehicle (EV) manufacturers, Maharashtra Chief Minister Devendra Fadnavis announced that the state government has withdrawn the proposed 6% tax on high-end EVs (priced above Rs 30 lakh).
The tax was introduced in the state budget for 2025-26 by Deputy CM and Finance Minister Ajit Pawar to generate extra funds. However, Fadnavis said the move would not bring significant revenue and could harm EV adoption efforts.
He made this announcement in the state assembly while responding to a question by Shiv Sena (UBT) leader Anil Parab. Parab argued that the tax would go against the Centre’s push to promote EVs through 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.
Fadnavis explained that after reviewing the proposal, the government decided to cancel the tax as it could send the wrong message about Maharashtra’s commitment to electric mobility.
Maharashtra Leading in EV Growth
Fadnavis also highlighted Maharashtra’s growing role in India’s EV sector. “Maharashtra is becoming the EV capital of the country as major manufacturing plants are coming up in Pune and Chhatrapati Sambhajinagar,” he said.
He emphasized that switching from petrol and diesel vehicles to EVs would help reduce air pollution. The state is promoting EVs in both private and public transport, with over 2,500 electric buses being introduced in phases.
More than 50% of newly registered vehicles in Maharashtra are now electric. The government is also developing EV infrastructure, including a widespread charging network, to support this transition.