Maharashtra proposes new taxes on high-end electric vehicles

The Maharashtra government has introduced a bill to increase taxes on high-end electric vehicles (EVs) and on private vehicles that run on CNG or LPG. The proposal was presented in the state assembly on Wednesday and is set to take effect on April 1. Once the bill is approved, the state expects to collect about ₹1,300 crore in tax revenue each year. The amendment includes a 1% increase in tax for privately owned CNG and LPG vehicles, which currently face taxes between 7% and 9%, depending on the vehicle type and price. Additionally, high-end EVs priced over ₹30 lakh will be subject to a 6% tax, marking a change in policy as EVs were previously not taxed. Light motor vehicles that carry goods weighing up to 7,500 kg will now pay a one-time tax instead of an annual fee. An official from the state transport department explained that the upper limit for motor vehicle tax has been raised from ₹20 lakh to ₹30 lakh for high-end vehicles worth over ₹2 crore. This is the first time in over two decades that the state has increased taxes on new vehicles. The bill includes penalties ranging from ₹300 to ₹500 for failing to pay the new tax. State finance minister Ajit Pawar announced these changes in his budget speech on March 10, and their implementation will begin after passing in both Houses.