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Old 24th May 2010, 21:00   #16
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Default Delhi Govt increases road tax on cars, two wheelers

18:39 HRS IST

New Delhi, May 24 (PTI) Get ready to shell out more for luxury cars and bikes.

The Delhi Government today 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.

Source:
fullstory

Another link:
http://www.ndtv.com/news/cities/delh...563.php?u=1739

Last edited by mukeshgoel : 24th May 2010 at 21:07. Reason: link added
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Old 24th May 2010, 21:07   #17
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The rate for cars, priced up to Rs.6 lakh, has been doubled to four percent, while it has gone up to seven percent on those costing between Rs.6 lakh and Rs.10 lakh. Those owning motor vehicles costing Rs.10 lakh would have to pay a road tax of 10 percent.


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Delhi hikes road tax for luxury cars, high-end bikes - Delhi - City - The Times of India
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Old 24th May 2010, 21:15   #18
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Delhi government is being VERY short sighted. All that is happen is that people would rush to have the vehicles registered in Gurgaon or Noida. Gurgaon surely being #Option 1.

Look at the price of Diesel differential in Delhi & Gurgaon. Delhi fuel pumps are threatening to go on a strike as the differential of Rs.04/- per litre is taking a toll on the business.

It is a NO-BRAINER.
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Old 24th May 2010, 21:44   #19
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Default RTO Charges in Gurgaon

Below are the RTO charges currently prevailing in Gurgaon (including Road Tax).

For vehicles having value upto 4 lacs - Rs 2000.

For vehicles having value more than 4 lacs and upto 10 lacs - 1%

For vehicles having value above 10 lacs - 1.5%.

Add some Rs 60 to 800 to the above figure as Registration charges depending on the vehicle type and all you need to do after this is Rejoice -

Source - Haryana Govt Transport Department Website.
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Old 25th May 2010, 00:40   #20
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Acceptable decision IMO since the metro and new buses are expanding their coverage. Too many cars on the road already, but unfair to tax them heavily unless a public transportation option exists.

Fuel prices will also go up further once they decontrol petrol and possibly diesel next month.

Coming next: congestion charges. The cost of car ownership is going to go up quite a bit in the coming years!
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Old 25th May 2010, 10:23   #21
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man the taxes were so low till now. I am all for increasing the taxes. But that revenue should be used to improve the facilities

And Delhi metro is really good and convenient too.

How are the taxes in Gurgaon and Noida?
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Old 25th May 2010, 10:27   #22
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I can't fathom why do more expensive cars have to pay more in terms of percentage. Okay now if govt said, cars weighing less than 1000kgs pay 4% 1000-1500 pay 5% and blah blah it would make sense. The heavier car puts more load on the road, so makes sense paying more road tax.
But how come a car which costs more puts more load on the road. Any sense in it, or its just another nonsense system being followed. As if somebody who can afford a car above 10L has committed a crime and needs to pay 10% instead of 6%
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Old 25th May 2010, 10:41   #23
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Quote:
Originally Posted by indian21r View Post
man the taxes were so low till now. I am all for increasing the taxes. But that revenue should be used to improve the facilities

And Delhi metro is really good and convenient too.

How are the taxes in Gurgaon and Noida?


I agree with you to the extent that revenue generated by taxes gets used for improving infrastructure , but that is far from the reality, don't we all know that ?

There is EDC & IDC in Gurgaon. External Development Charges & Infrastructure Development Charges.

The figures if I put them down here would make you go But do we see any Infrastructure Development happening here ? NO, we do not.

There is no master sewage system in Gurgaon - surprised ? Yes so was I, when I found out. Do we have running water (municipal) ? NO, 80% of Gurgaon's population is dependent on ground water, leading to depletion of water table etc etc, water harvesting is supposed to be mandatory, in reality does it even exist in other than a very few buildings. Roads - possibly the roads in most of Gurgaon are pathetic (though they are improving now). No NH8 is not how all of Gurgaon is.

So much for taxes, being used for the good of the people / city !! Which is why it is frustrating to hear the levy of any fresh taxes.

Sorry this may be a little off topic, but reality none the less.

Last edited by Ricky_63 : 25th May 2010 at 10:43.
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Old 25th May 2010, 11:50   #24
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There is not as much traffic as the mismanagement of traffic in Delhi.

No kind of charge is ever going to help! but well the govt is blinded by the dust in the air because of the common wealth construction.
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Old 25th May 2010, 11:55   #25
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I heard in news today that they are going to raise excise on diesel vehicles. Any idea it will be applicable for all India or only in Delhi
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Old 25th May 2010, 12:06   #26
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just read the news the increased rates will be applicable from 1st June 2010

"The road tax has been raised to generate more revenues for the state government as well as to induce consumers to switch to public transport and decongest roads.

Cars that cost up to Rs 6 lakh will attract 4% road tax, twice that of the existing rate. So a small car priced around Rs 3.5 lakh will entail a road tax of Rs 14,000 after the new rates are notified.

Consumers buying cars with a price tag between Rs 6 lakh and Rs 10 lakh will need to pay 7% road tax and cars costing above Rs 10 lakh will attract 10% road tax as compared to 4% at present.

The biggest impact will be on price of luxury cars that would cost at least Rs 1 lakh more. “There would be a rush of consumers buying and registering their cars before the new rates are applicable but there would be a sales lull thereafter for some time,” said Jnaeswar Sen vice-president (marketing) Honda Siel Cars India.

Two-wheelers costing between Rs 25,000 and Rs 40,000 will also attract 4% road tax as compared to 2% at present and vehicles with price tags of more than Rs 40,000 will entail 6% tax. Most two-wheelers sold in Delhi cost upwards of Rs 40,000. So consumers will need to shell out as much as Rs 2,000 more to buy the vehicle.

“This will impact consumers but would not mean reduction in sales in the region,” said Vishnu Mathur, directorgeneral , Society of Indian Automobiles Manufacturers (SIAM).

After a top-gear FY10, the new fiscal year began with spiffy growth with domestic passenger car sales up 40% in April, despite price hikes announced by carmakers. Carmakers cumulatively sold 1.43 lakh cars in April."

Prepare to shell out more road tax-Tax News-Tax Savers-Personal Finance-The Economic Times
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Old 25th May 2010, 12:31   #27
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Call me sadist. But I am happy. In a wicked way. I am from Bangalore.
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Old 25th May 2010, 13:19   #28
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I would like to have uniform taxation across the country. Road tax should be moved to federal list and then distributed to each state as weightage of population.

@Tanveer: Just as a higher your earning, more your income tax, by that same logic, higher the cost of car, the more the tax on it. By weight logic, you can have a car built of titanium costing say 1 Crore and still being lower than say 1000 Kgs pays no tax. So the logic on weight gets negated.

But I think the under 4m and 1.2 for Petrol / 1.4 for Diesel rule is quite apt
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Old 25th May 2010, 13:33   #29
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The Road Tax in UP (read Noida and Ghaziabad the NCRs of Delhi) was already higher than in Delhi itself when all the remaining services are costing similar.

I hope this increment is only for Delhi and not the NCR because I have just booked a Ford Fiesta and delivery is around 3rd June. The registration will happen only after 1st June, from the day when this rule becomes mandatory.

Any clues guys?? The difference will be almost 30K rupees!!
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Old 25th May 2010, 13:41   #30
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Quote:
Originally Posted by MileCruncher View Post
@Tanveer: Just as a higher your earning, more your income tax, by that same logic, higher the cost of car, the more the tax on it. By weight logic, you can have a car built of titanium costing say 1 Crore and still being lower than say 1000 Kgs pays no tax. So the logic on weight gets negated.

But I think the under 4m and 1.2 for Petrol / 1.4 for Diesel rule is quite apt
Well your logic is sound. But govt is saying they are doing this to ease up congestion.

Now if we see number of cars sold each month, we will see that cars above 15L will be a small percentage. Most cars sold are below 5L
So if they want to decrease congestion, should they not have higher taxes, lets say 20% for all cars.

Now if the govt said "You buy an expensive car, you pay 10% instead of 6% because we are bankrupt from the games". I would have no problem.
They are saying they are doing this to decrease congestion. For that argument, having a higher tax percentage does not make sense.

Moreover, coming to your income tax logic, we do not have different taxes for different income groups.

For example if somebody earned 10L he would not pay more tax on entire 10L, he would pay the higher tax only on that part of income above 10L

So by that logic, a 12 Lakh car should be taxed as
4% for the 5 lakh + 6% for the additional 5L and 10% for the additional 2 lakh, instead of 10% for the entire 10 lakh.
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