Maharashtra Withdraws Tax on Luxury EVs

The Maharashtra government has decided not to implement a proposed 6% tax on electric vehicles (EVs) priced above ₹30 lakh, as announced by Chief Minister Devendra Fadnavis. Initially included in the 2025-26 budget, the tax aimed to generate revenue but faced criticism for potentially hindering EV adoption, especially in the luxury segment. Concerns were raised by Shiv Sena leader Anil Parab about the tax contradicting national efforts to promote clean mobility. After discussions, Fadnavis acknowledged that the tax would not significantly boost revenue and could send the wrong signal about the state's commitment to EVs. Maharashtra, which is becoming a hub for EV manufacturing, aims to foster growth in this sector without additional luxury taxes. The decision aligns with broader goals to reduce air pollution by encouraging the shift from petrol and diesel vehicles to EVs.