[Maky]

Sense prevailed and the Maharashtra govt. has decided to drop the planned +6% tax on EVs above 30L ex-showroom.

“Earlier, while discussing the issue... there was a general view that till ₹30 lakh, we should not be charging anything on EVs, beyond that the luxury segment starts and why to give a tax incentive to a luxury segment vehicle. But on later discussion with finance minister, deputy CM and the officials, we concluded that there weren’t much vehicles in the the luxury segment (₹30 lakh and above) and we would not be getting much in taxes. So why should we tax without a reason?”

Source - https://economictimes.indiatimes.com...e3583e7033658f


It's high time the whole 'Luxury is a sin' concept really needs to die in india.

[shankar.balan]

We have yet to come out of that Quasi communistic mindset. But as always these laws are for lesser tax paying mortals and definitely do not apply to big business and politicians and ‘faux farmers’ all of whom have or can pay for wonderfully creative accounting abilities to avoid taxes.

It is true that if they tax less per capita they will drive consumption more and thus the overall tax collections will be higher.

But we are always in a tearing hurry the strip the Tax Paying Golden Goose, to a mere shadow of skin and bone and gristle.

With this said, this repeal of EV tax is a welcome move. I wish KA would do the same.

[Sahil]

Glad they did a uturn on this. The luxury EV segment although small has a good potential to grow with consumers adapting to EVs easily.
Main reason being that they have several other cars at home hence charging anxiety is less. Most are chauffeured so charging is appointed to the staff to handle. Moreover, these backseat customers value the silence and no vibration of an EV.
This shows clearly in the sales of the i7 in MH which outsells the 740i atleast in Mumbai with the zero EV tax being the biggest factor making both cars almost priced at par.

What the MH govt has raised is the max cap of RTO tax from 20L to 30L as they have sensed the amount of ultra luxury cars benefitting from this.

[nareshtrao]

I really hope other States too see the light of the day. Maharshatra has been in the forefront. UP too has taken a big step with inclusion of Hybrids in the tax concession list.

Karnataka has 10% tax and additional cess on EVs, and given the financials of the State, there is no hope for any concessions at least till 2028 when the tenure of this government ends. The ongoing freebies are eating up the finances leading to hike on everything including essentials so expecting a rebate on vehicles is far fetched for us.

[Nithesh_M]

How easily they remove taxes on anything rich folks can easily afford. But they cannot remove tax they imposed on health insurance that affects mostly the poor.

This looks like it is more to incentivise a certain Indian car maker whose EV sits around the 30+ ex showroom mark. I would recommend a tax for EVs above 50 lakhs. Those cars are only getting longer, wider and taller adding more congestion to our choked roads.

[peddagunda]

Finally, better sense prevails. I hope that Karnataka also follows and withdraws the benefits, but one can only hope.

In my opinion, they should think of taxing EVs once they cross 40% of all vehicular sales.

[carjack3090]

Originally Posted by Nithesh_M

How easily they remove taxes on anything rich folks can easily afford. But they cannot remove tax they imposed on health insurance that affects mostly the poor.

This looks like it is more to incentivise a certain Indian car maker whose EV sits around the 30+ ex showroom mark. I would recommend a tax for EVs above 50 lakhs. Those cars are only getting longer, wider and taller adding more congestion to our choked roads.

This is in purview of state government of Maharastra and that was in purview of GST council which also involves state MOS who vehemently oppose lowering of GST for anything since SGST also declines in the process

[ringsoftime]

Originally Posted by Nithesh_M

How easily they remove taxes on anything rich folks can easily afford. But they cannot remove tax they imposed on health insurance that affects mostly the poor.

This looks like it is more to incentivise a certain Indian car maker whose EV sits around the 30+ ex showroom mark. I would recommend a tax for EVs above 50 lakhs. Those cars are only getting longer, wider and taller adding more congestion to our choked roads.

Originally Posted by carjack3090

This is in purview of state government of Maharastra and that was in purview of GST council which also involves state MOS who vehemently oppose lowering of GST for anything since SGST also declines in the process

I think the point by Nitesh_M still stands, as the GST on EV is a measly 5% compared to the ICE cars. While I wholeheartedly agree that we need to get to a sustainable volume of EVs since we are a net importer of Petroleum, it should be done through incentivizing the Powertrain components.