To tax, or not to tax, that is the question

Come April 1st, 2025, and prices of premium electric vehicles (EVs) in Maharashtra are all set to soar, thanks to the 6% tax that has been proposed in the state budget for 2025-26 by Ajit Pawar, Deputy Chief Minister and Finance Minister of Maharashtra. All electric vehicles costing over INR 30 Lakhs will now have to pay a one-time tax of 6%, which according to Pawar, is expected to generate an additional revenue of INR 150 Crore, thereby providing an extra fillip to filling the state coffers. With everybody in the state government working at breakneck speed towards getting Mumbai Metropolitan Region (MMR)’s economy to touch the US$300 billion mark by 2030 and US$ 1.5 trillion mark by 2047, this definitely seems like a step in that direction. However, while several Indians, especially those living in metro cities, are only just warming up to the idea of EVs, it begs the question whether the burden of this tax will bode well for the future of EVs? We asked country heads of car companies, a founder of an energy company, as well as auto analysts to weigh in on the issue and here’s what they had to say… Vikram Pawah, President, BMW