New Delhi:
Get ready to shell out more for luxury cars and bikes in Delhi as the government has decided to increase the road tax on them to generate additional revenue and to "discourage" people from using private vehicles.
According to the decision taken by the Delhi Cabinet, two-wheelers costing upto Rs 25,000 will be charged the existing rate of two per cent while two-wheelers in the price range of Rs 25,000 to Rs 40,000 will attract a road tax of four per cent.
Two-wheelers above the price band of Rs 40,000 will be charged six per cent road tax.
For cars costing upto Rs 6 lakh, the tax has been doubled to four per cent from existing two per cent, while the cars in the price band of Rs 6 lakh and Rs 10 lakh will attract seven per cent road tax.
A 10 per cent road tax will be levied on cars costing above Rs 10 lakh. The new rates will come into force after a notification is issued, said an official.
Chief Minister Sheila Dikshit said "rationalisation of road tax rates" became necessary as they were not increased in last many decades.
"The Cabinet today gave its approval to a proposal to rationalise the present road tax rates on two-wheelers and cars," she told reporters.
Dikshit also said road tax prevalent in the neighbouring states were also considered before finalising the rates.
The Cabinet also decided to retain existing rates on public utility vehicles like public goods carriers as any hike in road tax on them may result in price rise of essential commodities.
Dikshit stated that the new rates were framed so that they have a marginal effect on purchase of two-wheelers and non-luxury cars.
"We hope the decision will go a long way in restricting purchase of luxury cars and will also discourage use of private vehicles. It will also enhance revenue generation," she said.
Officials said around 1,000 new vehicles are registered in the city daily, adding to the traffic pressure. At present, around six million vehicles are plying on Delhi roads.
According to the decision taken by the Delhi Cabinet, two-wheelers costing upto Rs 25,000 will be charged the existing rate of two per cent while two-wheelers in the price range of Rs 25,000 to Rs 40,000 will attract a road tax of four per cent.
Two-wheelers above the price band of Rs 40,000 will be charged six per cent road tax.
For cars costing upto Rs 6 lakh, the tax has been doubled to four per cent from existing two per cent, while the cars in the price band of Rs 6 lakh and Rs 10 lakh will attract seven per cent road tax.
A 10 per cent road tax will be levied on cars costing above Rs 10 lakh. The new rates will come into force after a notification is issued, said an official.
Chief Minister Sheila Dikshit said "rationalisation of road tax rates" became necessary as they were not increased in last many decades.
"The Cabinet today gave its approval to a proposal to rationalise the present road tax rates on two-wheelers and cars," she told reporters.
Dikshit also said road tax prevalent in the neighbouring states were also considered before finalising the rates.
The Cabinet also decided to retain existing rates on public utility vehicles like public goods carriers as any hike in road tax on them may result in price rise of essential commodities.
Dikshit stated that the new rates were framed so that they have a marginal effect on purchase of two-wheelers and non-luxury cars.
"We hope the decision will go a long way in restricting purchase of luxury cars and will also discourage use of private vehicles. It will also enhance revenue generation," she said.
Officials said around 1,000 new vehicles are registered in the city daily, adding to the traffic pressure. At present, around six million vehicles are plying on Delhi roads.
Track Latest News Live on NDTV.com and get news updates from India and around the world
