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Old 11th March 2025, 08:17   #1
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Maharashtra Budget 25-26: 6% tax on EVs above Rs. 30l

https://www.google.com/amp/s/m.econo.../118848195.cms

The Maharashtra Government, in it's 2025-26 budget, has proposed a 6% tax on EVs costing above Rs. 30l. This is going to have a direct impact on XEV 9E which costs Rs. 30.5l ex-showroom.

AFAIK any changes in indirect taxes are applicable from the date of budget, not April 1 like for direct taxes. So I presume if the cars haven't been registered at the RTO yet, we'll need to pay Rs. 1.83l?
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Old 11th March 2025, 10:10   #2
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Re: Maharashtra Budget 25-26: 6% tax on EVs above Rs. 30l

It would be a smart move from Mahindra to slash the price of XEV 9E, just to make it under 30L for the top spec variant. But since there is simply no competition to the car at the current price, I am sure Mahindra won't slash the price. Harrier EV can't come soon enough.
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Old 11th March 2025, 11:49   #3
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Re: Maharashtra Budget 25-26: 6% tax on EVs above Rs. 30l

Quote:
Originally Posted by Karthik Mathur View Post
The Maharashtra Government, in its 2025-26 budget, has proposed a 6% tax on EVs costing above Rs. 30l. This is going to have a direct impact on XEV 9E which costs Rs. 30.5l ex-showroom.
Central government is desperately pushing EV’s and state governments are discouraging EV’s one or the other way by increasing road taxes. Not sure what’s going on.

I think it’s the high time central government should enforce a unified Road tax structure for EV across all states. (1% upto 50L and 5% above 50L) Central government should be able to use the compensation cess on GST to negotiate with State governments.

Last edited by LionX : 11th March 2025 at 12:16.
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Old 11th March 2025, 12:41   #4
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Re: Maharashtra Budget 25-26: 6% tax on EVs above Rs. 30l

Just a matter of next few years before EV vehicles are taxed like ICE.
All the early adopters got some tax benefits but this is definitely not to continue for more than next 2-3 years.
Even with less than 1% sales, our government is trying to increase the taxes, so highly doubt if they can achieve more EV penetration by 2030 which they initially planned.

On a funny note, read somewhere that Trump wants 0% tax on vehicles imported from USA to India. Arey Trump bhai - our government is taxing its own citizens 50% and you expect 0% for you guys
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Old 11th March 2025, 13:12   #5
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Re: Maharashtra Budget 25-26: 6% tax on EVs above Rs. 30l

Quote:
Originally Posted by LionX View Post
Central government is desperately pushing EV’s and state governments are discouraging EV’s one or the other way by increasing road taxes. Not sure what’s going on.

I think it’s the high time central government should enforce a unified Road tax structure for EV across all states. (1% upto 50L and 5% above 50L) Central government should be able to use the compensation cess on GST to negotiate with State governments.
One country one road tax may surely happen sometime in the future.
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Old 11th March 2025, 14:08   #6
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Re: Maharashtra Budget 25-26: 6% tax on EVs above Rs. 30l

On top of this, following was proposed by MSEDCL few days back

https://punemirror.com/pune/others/m...1740036991.htm

Go through the article for finer points.
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Old 12th March 2025, 06:58   #7
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Re: Maharashtra Budget 25-26: 6% tax on EVs above Rs. 30l

Quote:
Originally Posted by LionX View Post
Central government is desperately pushing EV’s and state governments are discouraging EV’s one or the other way by increasing road taxes. Not sure what’s going on.
So more tax on vehicles with perceived clean fuel. That point apart, this tax seems to be arising more out of MH having issues in meeting poll promises that promote freebies culture. And when you need more money, you would simply go and increase taxes rather than cutting back on freebies. Unfortunately, this is becoming a new normal.
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Old 12th March 2025, 11:17   #8
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Re: Maharashtra Budget 25-26: 6% tax on EVs above Rs. 30l

Quote:
Originally Posted by LionX View Post
Not sure what’s going on..
Current ruling Maharashtra Government had promised so many freebies during the pre-poll promises that now they find it difficult to arrange money for. Govt. is just findings different avenues to loot the public and win polls somehow. Some examples:

- Govt. bus fare increased
- Tariffs on electricity raised and subsidies for solar reduced
- Liquor tax raised
- HSRP cost 3X in Maharashtra
- Traffic police blocking roads, raising fines rather than performing their duties
- Site seeing area across MH, start seeing fee collection in the name of forest protection
- The EV taxes
- I heard the RTO tax are also proposed to be increased (not confirmed though)
- Many more are in pipeline

Last edited by UD17 : 12th March 2025 at 11:19.
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Old 12th March 2025, 12:13   #9
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Re: Maharashtra Budget 25-26: 6% tax on EVs above Rs. 30l

Sooner or later this was bound to happen and more states will jump into this trend including the central government in the near future. You may even expect a cess on electricity units used for car charging 5-10 years down the line.

Government is bound to ensure its revenue remains stable, if not increasing every year. Freebies just accelerate the need to tax these areas at the earliest.

We will be living in the fools world if the taxes collected from ICE world are not transferred to EV world in the near future.
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Old 12th March 2025, 12:51   #10
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Re: Maharashtra Budget 25-26: 6% tax on EVs above Rs. 30l

Any questions anyone may have about this step should be in no doubt that it's due to mismanagement of funds and freebies to our Pyaari Laadli Behnas.

Link for reference:
https://timesofindia.indiatimes.com/.../118861052.cms

A line from the article:
"It proposes new taxes, mainly related to motor vehicles, which are expected to generate revenue of Rs 1,125 crore."

Freebies are the scourge of any modern economy.

Last edited by ads295 : 12th March 2025 at 12:53.
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Old 12th March 2025, 14:17   #11
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Re: Maharashtra Budget 25-26: 6% tax on EVs above Rs. 30l

If the proposed road tax is on the EVs above Rs 30 lakhs, I see a brighter side here that this law will push Mahindra, Tata and other EV manufacturers to keep their vehicle (BE6, 9E, Harrier/Safari EV) prices in check (Read - Honest Pricing by transferring GST benefits offered by the Govt to the end users instead of milking the market.)

Last edited by 46TheDoctor : 12th March 2025 at 14:21.
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Old 12th March 2025, 16:40   #12
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Re: Maharashtra Budget 25-26: 6% tax on EVs above Rs. 30l

This will Make Maharashtra Great Again!

As usual, this is par for the course, Politicians and Bureaucrats have made another stupid decision. This will force car companies to cut corners in their offerings to fly just under the tax threshold. Instead of making the best possible product they will be making the best possible compromises so that they can bring the cost of their product below 30 lacs. So expect safety and some other features to be sacrificed. And, as usually happens, it will kill all products in the 10-20%% range above this threshold. So, expect no products in the 30 to 35 lac range.
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