In Short : Maharashtra has introduced new taxes on eco-friendly vehicles: a **6% tax on EVs priced above ₹30 lakh** and a **1% tax on CNG vehicles**. The move aims to boost state revenue while promoting cleaner energy options. While the tax on premium EVs may impact sales, the lower rate for CNG vehicles supports their adoption as a greener alternative to traditional fuels.
In Detail : The Maharashtra government announced a six per cent tax on electric vehicles costing more than ₹30 lakh. The government which announced its Budget on Monday, also increased the 1 per cent tax on Compressed Natural Gas (CNG) vehicles.
The changes are set to be implemented from April 1.
“The tax is levied only on EVs which are priced above ₹30 lakh because it’s luxury and not below that,” said Maharashtra Chief Minister Devendra Fadnavis according to media reports.
The increased tax rate on CNG vehicles is aimed to generate an additional revenue of around ₹150 crore for Maharashtra in 2025-26.
As the Maharashtra government has announced a 6 per cent tax on electric vehicles, experts have pointed out that the penetration will likely be impacted. In passenger vehicles, the electric vehicle penetration is up to 2 per cent.
“With the tax, the prices of electric vehicles will go up. The period of subsidy for electric vehicles is getting over. This is the perfect time to continue the subsidy as automobile players are bringing new electric vehicle products. However, we are also expecting the battery prices to reduce. The balance between both should happen,” said Manish Raj Singhania, Chairman, of Research & Academy, FADA to businessline.
