The passenger cars in Delhi will become costlier soon. The reason: the Cabinet of Delhi Government has approved the issuance of an Ordinance effecting increase in lifetime road tax on non-transport vehicles to 2% in case of passenger cars costing up to Rs. 4 lac and 4% on vehicles priced above Rs. 4 lac. The diesel passenger cars registered in Delhi will have to cuff up an additional 2% as green tax. The increase works out to 200 to 1000% depending on the price of vehicle.
The existing road tax slabs are: Rs. 3,815/- for passenger cars with unladen weight of 1000 kgs; Rs. 4,880/- in the case of cars having weight in the range of 1000-1500 kgs; and Rs. 7,050/- for passenger cars with weight in the range of 1500-2000 kgs.
The proposed increase in road tax coupled with parking tax of Rs. 2,000/- imposed recently by MCD at the time of registration of new passenger cars will push up the on-road price of passenger cars in Delhi significantly. The increase could be as high Rs. 1.5 lac in the case of a Mercedes car. The new road tax regime likely to come into force by the end of October'04, may lead to diversion of trade to the neighbouring states having lower road tax rates.
The increase in road tax on non-transport vehicles registered in Delhi was one of proposals contained in Delhi Government's Budget presented in July. However, the increase could not take effect as the last Budget lapsed without being passed in the Legislative Assembly. It may be recalled that a similar proposal had been mooted by the Delhi Government last year as well. However, the proposal had to be shelved for political reasons due to impending elections for the State Assembly.
Let alone the hefty increase in road tax, the so-called green tax @ 2% on diesel vehicles defies logic and rational. The diesel vehicles are equally environment friendly and meet the emission standards laid down in the Motor Vehicles Act/Central Motor Vehicle Rules. Then why single them out for differential treatment?
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