Tax Deduction On EV Vehicle: Maharashtra Chief Minister Devendra Fadnavis announced on Wednesday in the state council that the government will remove the 6% tax on electric vehicles (EVs) priced above Rs 30 lakh. This tax was originally proposed by Deputy CM and Finance Minister Ajit Pawar in the 2025-26 budget. CM Fadnavis made this announcement while answering a question from Shiv Sena (UBT) legislator Anil Parab during a discussion on EVs and air pollution.
Deputy CM Ajit Pawar had said that the six per cent tax on EVs priced above Rs 30 lakh was part of its move to mop up additional revenue. However, the auto industry and other stakeholders had urged the state government to withdraw the 6 per cent tax, especially when the Centre and the state government are promoting the use of EVs to address the pollution issue.
Anil Parab raised concerns over the proposed tax which would have been effective from April 1. He said, “The Centre is actively encouraging EVs by providing a slew of incentives.
The state government’s proposal to level a six per cent tax on EVs above Rs 30 lakh would be counter productive and it would be contradictory to the broader objective of promoting pollution free and clean mobility.”
The chief minister said that the government arrived at a conclusion that the tax would not mobilise substantial revenue and could send the wrong signal about our commitment to electric mobility. Therefore, the state government will not go ahead with the six per cent tax on EVs priced above Rs 30 lakh, he added.
During the March 10 budget presentation, the Maharashtra government proposed a 6 per cent tax on EVs priced above Rs 30 lakh and a 1 per cent tax hike on individually owned non-transport CNG and LPG four-wheelers. This move aimed to generate around Rs 150 crore in 2025-26. Adding further, the Finance Minister announced a 7 per cent tax on light goods vehicles (LGVs) carrying up to 7,500 kg, expected to bring ₹625 crore to the state exchequer. (With IANS Inputs)
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