Maharashtra: 6% Tax on EVs Above Rs 30 Lakh From July 1; 1% Additional Tax on Other Fuel Vehicles
Pune, 30th June 2025: Starting July 1, the prices of electric vehicles (EVs) priced above ₹30 lakh, as well as petrol, diesel, CNG, and LPG vehicles, will see a rise due to new state tax policies. As per the Maharashtra state budget for 2025-26, the state government will impose a 6% tax on electric vehicles costing more than ₹30 lakh. Additionally, an extra 1% motor vehicle tax will be levied on vehicles running on conventional fuels, including CNG and LPG.
Transport Commissioner Vivek Bhimanwar confirmed the details, stating that the earlier 6% tax exemption on high-end EVs was initially granted to encourage electric mobility. However, to boost revenue, the government decided to withdraw this exemption for EVs costing over ₹30 lakh. Similarly, an additional 1% tax will now be collected on petrol, diesel, and CNG vehicles purchased from July 1.
As a result, prices of high-end EV models such as Hyundai’s Ioniq 5, Kia’s EV6, and BYD’s Seal and Sealion 7 are likely to increase.
Commenting on the move, Sudhir Mehta, former president of the Maratha Chamber of Commerce, Industries, and Agriculture (MCCIA), said, “There are relatively fewer buyers for electric vehicles priced above ₹30 lakh. The government needs to raise revenue, so this step is understandable. However, instead of a blanket decision, the government should consider separate measures for electric vehicles used in public transport. This change will raise prices.”
Bhimanwar added, “Through this tax structure on petrol and diesel vehicles, a balance can be maintained. Its implementation from July 1 will also help improve transport management.”
