Cabinet nod to road tax hike

Now if you want to buy a Land Cruiser, a Honda CRV or any other luxury vehicle, be prepared to pay a whopping 10 per cent of its cost in road tax. The Delhi Cabinet on Monday gave its nod to hike in road tax for various categories of vehicles. The new road tax structure, which will come into force after a notification is issued, will range from 2 to 10 per cent. The decision was taken in a Cabinet meeting presided over by chief minister Sheila Dikshit.

While the Delhi government officials, who attended the meeting, stated that the government has rationalised road tax structure, the new regime will lead to an increase in the cost of vehicles.
Meanwhile, the public goods careers have been spared the hike. “The Cabinet has decided to retain prevalent rates on public utility vehicles like public goods careers, as such hike would directly, indirectly affect the common man, said Ms Dikshit. She also claimed that there will be very little effect on purchase of two wheelers and non-luxury cars. Ms Dikshit also pointed out that in case of some vehicles the present rates will continue to be in force.
Meanwhile, senior BJP leader V.K. Malhotra said: “In the name of Commonwealth Games, the chief minister is using the hard-earned money of Delhiites. The economy of state government is derailed and now she is hard pressing the departments for imposing more and more taxes on Delhiites”.
Under the proposed road tax system, two wheelers costing up to Rs 25,000 will be charged a road tax of 2 per cent and those costing Rs 25,000 to Rs 40,000 to 4 per cent. Vehicles costing above Rs 40,000 will be charged 6 per cent of the cost. It has also been confirmed that vehicles in Rs 6 to 10 lakhs price range will pay 7 per cent and luxury vehicles will be charged 10 per cent of the cost.

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