Key highlights
- Maharashtra government withdraws proposed EV tax
- Withdrawal done after industry and public backlash
- Earlier 6 per cent tax was proposed on EVs above Rs 30 lakh
The government of Maharashtra has finally pulled the plug on its proposed luxury EV tax after receiving strong criticism from the industry and the public. Check the complete details below.
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Maharashtra government luxury tax proposal withdrawn
As per the latest press conference conducted by Chief Minister Devendra Fadnavis, the government of Maharashtra has decided to pull the plug on its proposed luxury EV tax.
This critical decision was taken after the government received strong criticism from the carmakers and the public, citing that the government was working against its EV policies and vision.
Adhering to the public and carmakers’ demands, the Chief Minister also stated that its decision was not right for the state’s vision of becoming emission-free and EV-friendly. He also added that the tax would not generate significant revenue and it could send a wrong message to the EV buyers and manufacturers.
Earlier, during the budget session, Deputy Chief Miniter Ajit Pawar had proposed 6 per cent taxation on the electric vehicles above Rs 30 lakh price tag. This turned into a backlash by the carmakers and the public, leading to the withdrawal.
However, alongside the luxury EV tax, the government has also proposed a 1 per cent tax on LPG and individual non-transport CNG vehicles. Additionally, a 7 per cent tax will also be implemented on commercial vehicles from April 1, 2025.
Unlike the luxury EV tax, the CNG, LPG, and commercial vehicles will undergo the price revision from the coming April 1.
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Our verdict
The government of Maharashtra has been one of the leading state governments that are heading with a complete EV transformation vision. However, a luxury tax on EVs would have been a bad idea, especially for the new EV makers who are willing to grow in the state.