Maharashtra drops 6% tax plan on EVs priced above ₹30 lakh

The Maharashtra government has announced that it would scrap its budgetary proposal to impose a 6% tax on electric vehicles (EVs) that are priced above ₹30 lakh. Chief minister Devendra Fadnavis announced this in the Legislative Council on Wednesday.

"Earlier, while discussing the issue... there was a general view that till ₹30 lakh, we should not be charging anything on EVs, beyond that the luxury segment starts and why to give a tax incentive to a luxury segment vehicle. But on later discussion with finance minister, deputy CM and the officials, we concluded that there weren't much vehicles in the the luxury segment (₹30 lakh and above) and we would not be getting much in taxes. So why should we tax without a reason?" Fadnavis said in the council.

Fadnavis' response came after Shiv Sena MLC Anil Parab raised the issue of the 6% levy disincentivising non-polluting vehicle manufacturers.