Mar 27, 2025 08:38 AM IST
Chief minister Devendra Fadnavis said his government didn’t want to disincentivise people from buying electric vehicles
Mumbai: The Maharashtra government has withdrawn its decision to levy a 6% tax on electric vehicles priced above ₹30 lakh so as to not disincentivise people from buying them, chief minister Devendra Fadnavis said in the state legislative council on Wednesday.
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.
The rollback announcement came while Fadnavis was responding to a question by Shiv Sena (UBT) leader Anil Parab on EVs in the legislative council. Parab had raised concerns over the proposed tax, saying it would go against the Centre’s efforts to promote non-polluting EVs through various incentives.
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.
With inputs from PTI.
