Maharashtra Drops Proposed 6% Tax on High-End Electric Vehicles:

Maharashtra Chief Minister Devendra Fadnavis announced that the state government will not implement the proposed 6% tax on electric vehicles priced above Rs 30 lakh. The decision was made after concluding that the tax would neither yield substantial revenue nor align with the state’s commitment to promoting electric mobility.

Tax Would Conflict with Clean Mobility Goals

Speaking in the state assembly, Fadnavis responded to a query by Shiv Sena (UBT) leader Anil Parab, who expressed concern that the proposed tax would contradict central government efforts to encourage the adoption of non-polluting electric vehicles.

Parab pointed out that such a tax would undermine incentives offered at the national level and discourage the use of clean energy vehicles, especially in a state dealing with high levels of air pollution.

Background on the Proposed Tax

The 6% tax was initially suggested in Maharashtra’s budget for the financial year 2025–26. It was targeted at luxury EVs, those costing more than Rs 30 lakh. However, after reconsideration, the state has opted not to proceed with the levy to support the broader vision of clean mobility and environmental sustainability.