Maharashtra Withdraws Proposed Tax on Premium EVs

• 27 Mar 2025

Why in News? 

Maharashtra Chief Minister announced that the state government will not impose the proposed 6% tax on electric vehicles (EVs) priced above Rs 30 lakh. 

 Key Points 

• Proposed in Budget 2025-26:  
  • The tax on high-end EVs was initially introduced in Maharashtra’s 2025-26 state budget before being withdrawn. 
    • The government reconsidered the tax after stakeholders raised concerns about its potential impact on EV adoption and revenue generation. 
  • The Chief Minister highlighted that Maharashtra is emerging as a key EV manufacturing hub, with major plants coming up in Pune and Chhatrapati Sambhajinagar. 
  • He emphasized that shifting from petrol and diesel vehicles to EVs would significantly reduce air pollution, as conventional vehicles are the primary contributors. 
  • Over 2,500 electric buses are being introduced in phases, and more than 50% of newly registered vehicles in Maharashtra are now electric, reflecting the state’s strong push for clean mobility. 

 Electric Vehicles 

• About: Electric vehicles are a type of vehicle that use one or more electric motors for propulsion, instead of a traditional internal combustion engine (ICE) that burns gasoline or diesel. 
  • Though the concept of electric vehicles has been around for a long time, it has drawn a considerable amount of interest in the past decade amid a rising carbon footprint and other environmental impacts of fuel-based vehicles. 
• Types of Electric Vehicles: 
  • Battery Electric Vehicles (BEVs): Solely rely on battery power for propulsion and produce zero tailpipe emissions. 
  • Plug-in Hybrid Electric Vehicles (PHEVs): Combine an electric motor with a gasoline engine. They can be charged externally and run on battery power for a limited range, then switch to the gasoline engine for longer journeys. 
  • Hybrid Electric Vehicles (HEVs): Use both an electric motor and a gasoline engine, but the battery cannot be charged directly by plugging in. 
  • The battery is charged by the gasoline engine or through regenerative braking.