From June 1, tax up, vehicles costlier

From June 1, tax up, vehicles costlier

Indian Express, 25.05.10

Prepare to pay more for owning a car in Delhi from June 1.

The Delhi Cabinet on Monday decided to raise the registration fee (or road tax) on luxury cars and two-wheelers. The decision comes at a time when the government is mulling a congestion fee and charging citizens who own more than two cars, to help reduce traffic congestion and air pollution in the Capital.

According to the revised road tax rates, the Cabinet headed by Chief Minister Sheila Dikshit held that two-wheelers that cost up to Rs 25,000 will be charged the existing two per cent but two-wheelers that cost above Rs 25,000 will now attract four per cent tax. The rate for cars priced up to Rs 6 lakh has been doubled to four per cent, while it has gone up to seven percent for those that cost between Rs 6 lakh and Rs 10 lakh.

Retaining the tax structure for public utility vehicles like auto-rickshaws and taxis, officials said the increase for non-luxury cars and two-wheelers is minimal.

“This is meant to discourage the use of private vehicles in the city,” Dikshit said.

With neighbouring states like Haryana and Uttar Pradesh charging taxes between one per cent and three per cent, Transport minister Arvinder Singh Lovely said the government has increased the taxes after taking the existing rates into account.

“One cannot get a car registered from another state unless one is a bona fide resident of that state. Residents will have to bypass the law to register a car from another state,” Lovely said.