Maharashtra govt proposes 6% tax on EVs costing more than Rs 30 lakh

The Maharashtra government on Monday proposed a 6 per cent tax on electric vehicles priced more than Rs 30 lakh in the budget for the fiscal 2025-26.

Deputy Chief Minister Ajit Pawar, who also holds the finance portfolio, tabled the budget and announced a 1 per cent hike in the Motor Vehicle Tax on CNG and LPG vehicles. 

The government has also proposed a 7 per cent tax on vehicles used for construction activities, which will generate additional revenue of approximately Rs 180 crore.

The state government has proposed a 6 per cent tax on electric vehicles above Rs 30 lakh and a 1 per cent tax hike on individual-owned non-transport four-wheeler CNG and LPG vehicles.

The move will generate an additional revenue of approximately Rs 150 crore in 2025-26.

Pawar also announced a 7 per cent tax on light goods vehicles (LGVs) carrying goods up to 7,500 kg, which will earn the state Rs 625 crore.

The government has also increased the maximum limit of the Motor Vehicles Tax from Rs 20 lakh to Rs 30 lakh, which is expected to generate a revenue of Rs 170 crore.