The Maharashtra Government, while announcing the state budget for FY 2025-26, planned to levy a tax on EVs priced above Rs 30 lakh. Earlier, to promote electric vehicles (EVs), the government implemented a tax relaxation on such vehicles, which led to the growth of this segment. This new taxation policy made an enormous impact on new EV buyers’ minds. Now, watching this buyer behavior, the Government has announced something new about the Maharashtra Vehicle tax! What’s That?
Attention Readers! Join us on Whatsapp Community for daily auto news updates.
Maharashtra Vehicle Tax – What’s New?
In an attempt to encourage new car buyers to choose EVs, the state government has withdrawn the proposal that accounted for a 6 percent sales tax on EV segment. This tax was levied on EVs priced above Rs 30 lakh (ex-showroom), categorizing them under luxury cars. Addressing to go against this new taxation policy, Maharashtra CM, Devendra Fadanvis said, “We are disincentivizing EVs counting it under the luxury segment without any reason, we will not go ahead with this policy”.
Also Read – India’s Cheapest Car To Get More Cheaper & Offer More Mileage
How Will This Help The Automakers in India?
This policy withdrawal will help automakers like Mahindra, Hyundai, Kia and others to easily sell their EVs. Mahindra’s new XEV 9e was just cutting the rope as its top variant was priced at Rs 30.50 lakh (ex-showroom). It would have just got taxed as it was expensive by Rs 50,000 from the given mark.
Also Read – Don’t Ignore These 5 Cars Under Rs 15 Lakh!
Moreover, this withdrawal will also help Tata and Tesla too. Currently Tata is all set to launch its new Harrier EV and Sierra EV in the country. Harrier EV is also expected to cross the mark and be priced above Rs 30 lakh (ex-showroom). Moreover, Elon Musk’s Tesla is also looking to enter India with its Model 3 and Model Y as the first two offerings. There are no chances that these models will be priced below Rs 30 lakh (ex-showroom).
What Else?
Currently, there has been an increase in the EV buyers in the country. Moreover, the EV buyers are majorly concerned with getting maximum features in their cars. However, with the increase in EV tax, many buyers scrapped their decisions. But, now this withdrawal is expected to help the buyers to again think of such cars in Maharashtra.
Also Read – Big Update On This Upcoming Volkswagen SUV!