Proposed Tax Measures in Maharashtra (2025-26 Budget)
Maharashtra is set to introduce a new Electric Vehicle (EV) policy, replacing the existing one by March 30, to address emerging challenges and promote EV adoption.
- New EV Policy Introduction: The new policy will promote alternative fuel options, replacing the existing policy by March 30.
- Special Committee Formation: A committee has been formed to assess challenges in EV adoption, including charging infrastructure, vehicle range, and safety standards.
- Withdrawal of Proposed Tax: Maharashtra has withdrawn the proposed 6% sales tax on EVs priced above $35,000 to encourage adoption. The tax was initially proposed to raise additional funds but was withdrawn to support nascent EV sales in the country.
In summary, Maharashtra continues to support the growth of the EV sector through policy adjustments and infrastructure investments, ensuring it remains a key player in India’s transition to electric vehicles.
Delhi’s New Proposed EV Policy
The Delhi government is reportedly in the process of introducing a new EV policy to replace the existing policy notified in August 2020. The earlier policy, which has been extended multiple times beyond its original term, is now expected to be overhauled.
While the official draft of the new policy is not yet in the public domain, media reports suggest that it aims to significantly accelerate EV adoption in the city. Key features include proposed restrictions on new petrol and diesel two-wheeler registrations from August 2026, transition requirements for older CNG three-wheelers, and targets to scale EV adoption to 95% by 2027. The policy is also expected to mandate EV-ready infrastructure in new and existing buildings and introduce incentives or requirements linked to household vehicle ownership patterns.
We will be following any new developments in relation to the above proposals closely and will keep you updated.