Maharashtra CM Devendra Fadnavis announced on Wednesday that the state has scrapped the proposed 6% tax on EVs priced above Rs 30 lakh.
The tax, part of the 2025-26 budget, faced backlash from carmakers and others, who argued it would hurt EV adoption and pollution control efforts.
Shiv Sena (UBT) leader Anil Parab opposed it, saying it went against Maharashtra’s push for cleaner vehicles.
Fadnavis agreed, stating the tax wouldn’t generate much revenue and could discourage EV adoption.
Other budget changes, like a 1% tax hike on CNG and LPG vehicles and a 7% tax on construction and light goods vehicles, will take effect from 1st April 2025.
Maharashtra is emerging as an EV hub, with new factories, rising EV registrations, expanded charging networks, and 2,500 electric buses set to join public transport.
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