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Informative

Maharashtra State Scraps 6% EV Tax Plan to Boost Adoption

Update / Judgement Date

26 Mar 2025

Source

Reuters

Author

Team — WCP Legal Desk

Reading Time

1 min read

Excise, VAT & CustomGSTStart-Up & DPIIT

To encourage the adoption of electric vehicles (EVs), Maharashtra has withdrawn a proposal to impose a 6% sales tax on EVs priced above $35,000. This decision aims to increase EV adoption in a market where they currently represent only 2% of total car sales.