Mumbai: A week after the assembly passed a bill to amend Maharashtra Motor Vehicles Act to levy a 6% tax on electric vehicles (EVs) that cost over Rs 30 lakh, CM Devendra Fadnavis on Wednesday announced that govt has decided to withdraw this proposal.
BJP’s Uma Khapre raised the issue of air pollution in Hinjewadi and Pimpri-Chinchwad owing to the presence of ready-mix cement plants and vehicles. To this, Fadnavis said EVs make up more than 50% of the vehicles registered across Maharashtra. “By 2030, with efforts, 90% of the vehicles will be EVs. We have made a policy for EVs. Maximum pollution is on account of [conventional] vehicles. Two-wheelers have already shifted to EVs. If four-wheelers too shift, then it will reduce pollution,” he said, adding that Pune and Chhatrapati Sambhajinagar will be the new hub for EV manufacturing. “Maharashtra will be the national capital for EV manufacturing,” he said.
Sena (UBT)’s Anil Parab asked if there would be a rethink on taxes to promote the state’s EV policy. Fadnavis replied, “In the past, we consciously did not levy a tax on EVs to promote them and create an ecosystem for them. In the cabinet, there was a line of thinking that there should be no tax up to Rs 30 lakh, but one should be levied above Rs 30 lakh, which is a luxury segment.” He said at a meeting of deputy CMs Eknath Shinde and Ajit Pawar and officials on Tuesday, it was felt that there are not too many EVs in the luxury segment. “So why create a disincentivising sentiment?”
Sena MLC Manisha Kayande said except the BMC chief, no one else was using an EV. She suggested that govt bring in a policy to make all govt vehicles electric. Fadnavis said while it was a good suggestion, the home department requires certain types of vehicles that are bulletproof and are currently not electric. EVs cost Rs 3.5 crore while govt buys them in the Rs 30-35 lakh range. Fadnavis said govt would consider increasing the interest subsidy for MLAs who opt for EVs.
The decisions on the levying of the tax and rollback came amid reports that Elon Musk’s EV giant Tesla is keen to set up a manufacturing plant in India and Maharashtra is among the contenders.