Tax on expensive electric vehicles starts from July 1, but some people can save like this

EV Tax: If you live in Maharashtra and are thinking of buying a luxury electric car worth more than Rs 30 lakh, then the tax-free facility that was available earlier is now over. But you can still save on these vehicles.

Wed, 02 Jul 2025 10:20 PM (IST)
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Tax on expensive electric vehicles starts from July 1, but some people can save like this

If you are a Maharashtra resident and wish to buy a top-of-the-line electric vehicle that is worth more than Rs 30 lakh, be careful now. The Maharashtra government now charges 6 percent road tax on such vehicles from July 1, 2025, and thereafter, the concession of paying zero taxation, that existed earlier, is now shut. The move will have a direct impact on those purchasing cars such as BMW iX, Mercedes EQE, Audi e-tron, and Jaguar I-Pace.

Till now, Maharashtra was considered the most EV-friendly state in India, as the road tax and registration charges on luxury electric vehicles were almost zero here. Due to this, customers used to save lakhs of rupees. But now the rules have changed. If you buy an EV worth Rs 70 lakh, then now you will have to pay an additional tax of about Rs 4 lakh. Due to this, by the end of June, many dealerships saw a crowd of customers. Those who wanted to take delivery before the tax came into force.

The government says that this step is necessary for both equality and revenue. Road tax is taken from those who buy petrol and diesel vehicles, then why not from luxury EV owners? Thinking about this, now tax has been imposed on them as well. Apart from this, a 1 percent surcharge has also been imposed on all non-EV vehicles.

However, critics believe that this decision has been taken at a time when companies like Kia, Volvo, and Tesla are going to launch more electric models in India. In such a situation, this step of the government can give the wrong message.

If the price of your electric vehicle is less than Rs 30 lakh, then at present, you will not have to pay any kind of extra tax. Some popular models that fall under this category are. Which includes cars like Tata Nexon EV, Tata Punch EV, and Tata Curvv.EV (Upcoming), Tata Harrier.EV, MG ZS EV, MG Windsor, Mahindra XUV400.

Road tax is still waived on these vehicles, and GST is also low. But people fear that this relief can also be abolished in the future.

After this decision, some people are now thinking of registering their cars in states like Telangana or Delhi. Because subsidies and tax exemptions are still available there. If this happens, Maharashtra will not only lose tax revenue, but it may also lose its identity as an "EV-friendly state".

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Muskan Kumawat Journalist & Writer