Luxury electric vehicles will be costlier in Maharashtra from April 2025. Know more

High-end electric vehicles costing ₹30 lakh or more will be further expensive in Maharashtra starting from April 2025. The Maharashtra government has announced that high-end electric vehicles will be taxed at a rate of six per cent from April 2025. The decision has been announced in the state budget. With this, people wanting to purchase high-end electric vehicles in the state will have to pay more from April 2025, as the government will slap six per cent tax on the EVs that are priced at ₹30 lakh or more. Interestingly, currently, Maharashtra does not levy any motor vehicle tax on EVs.

This move could boost sales of high-end electric vehicles in the remaining days of March 2025, while it could pose a challenge for many buyers who seek to buy a premium electric vehicle after April 2025. This is expected to raise concerns about potential sales declines in the coming months, especially at a time when the demands for high-end electric vehicles have been rising across the country.

On the other hand, the proposed tax on the high-end electric vehicle is expected to boost the state's treasury. The tax increase will increase the state government’s revenue by ₹320 crore in the next fiscal year.

Vehicle buyers in Maharashtra to see tax hike from April 2025

While the premium electric vehicles will be slapped with a six per cent tax from next financial year, private four-wheelers powered by CNG and LPG powertrains will also see an additional one per cent tax from April 2025, the Maharashtra state government budget announcement has revealed. The Motor Vehicle Tax in the state is currently levied on the CNG and LPG vehicles, ranges between seven per cent and nine per cent.

With this proposed one per cent hike, he tax will range between eight to 10 per cent for the private four-wheelers with CNG or LPG powertrain. In its budget announcement, the state government has increased the maximum threshold for the Motor Vehicle Tax from ₹20 lakh to ₹30 lakh. It is expected that the move will generate over ₹170 crore revenue to the state.

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