The Maharashtra government has dropped the proposed vehicle tax on electric vehicles priced above Rs 30 lakh. The state government had, earlier this month, proposed a 6 per cent tax on EVs costing more than Rs 30 lakh in the state as part of its budget for the upcoming financial year. The decision to drop the proposed tax was announced by Maharashtra CM Devendra Fadnavis on March 26.
Also read: Maharashtra Proposes Tax On EVs Over Rs 30 Lakh, Tax Hike on CNG Passenger Cars
As per reports, the proposed tax was deemed to be counterintuitive to the adoption of electric vehicles while not generating significant revenue in return.
India has seen a big influx of luxury EVs in recent years.
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The new vehicle tax that was proposed would have primarily affected premium and luxury EVs sold in the country from the likes of BYD, Hyundai, Kia, Mercedes, Audi, BMW and Volvo. The tax would have also affected models from Tesla, which is expected to launch part of its model line-up in the country in the coming months.
Also read: Electric Cars, SUVs Set To Become More Expensive In Kerala With Increase In Road Tax
The tax on EV aside, the government has also proposed a hike in tax on CNG and LPG, non-commercial passenger vehicles. The proposed budget also called for a hike in the maximum limit of vehicle tax from Rs 20 lakh up to Rs 30 lakh while also announcing revised tax rates for construction machinery and vehicles.
