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Old 25th May 2010, 14:02   #31
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Originally Posted by tsk1979 View Post
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.
But things aren't that simple, are they? Yes the congestion is attributed to more number of cars and there are more smaller cars being sold vis-a-vis luxury cars. But if you tell a middle class guy that I'll tax you more just because your small car is contributing more to the congestion, they'll be up in arms. We are still a socialist country where in the motto is affordability for all. Inclusive growth is what we are talking here. So the Govt wants a bicycle guy moving on to a bike, a bike guy moving onto a car and a M800 guy buying a Zen et al. The whole stress is on upward social movement.

Now once we have achieved the basic standards of living for all and sundry then you start taxing your cars with congestion charge and registration taxes based on emission. Why emission and not value. Because under excise duty you are already charging based on the total value of the car. So apart from achieving the basic BS-IV/III norms, whats the incentive for a manufacture to reduce emissions. Under emission taxation system, they will see the benefit of more sales and hence will go for greener technology.

You can compare Vehicle Taxation & Income Tax as both are different forms of taxation; Direct & Indirect Taxation with varied aims and targets. May be a CA can explain that better.
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Old 25th May 2010, 17:51   #32
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Originally Posted by Ricky_63 View Post
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 ?
Ya it is true about Gurgaon. I hate the dust in the city

Originally Posted by download2live View Post
Call me sadist. But I am happy. In a wicked way. I am from Bangalore.
In a way I also agree coming from the belt with highest taxes

Originally Posted by MileCruncher View Post
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 weight-age of population.
MC in India it is time to update the state list and federal list. The distribution has to be according to the number of vehicles registered rather than population. Take Bihar vs AP. Sales numbers do not reflect the population right??

socialism is an overrated term. I am all for upward social movement but I believe that uniform taxation is necessary across all segments. Why differentiate a BMW from Nano when both of them use the same quality roads?

As long as there is price disparity, people will find all means possible to get the best deal. And Delhi guys not only have lower taxes but lower fuel price as well ( Benefit of a UT vs Mumbai which looses out all revenues earned to the state . well this is a topic for another time).

Last edited by indian21r : 25th May 2010 at 18:06.
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Old 26th May 2010, 21:43   #33
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Another thought that just crossed my mind. WHY should the registration be hiked AT ALL ?? Logically the government any which way makes more money on more expensive cars, by way of excise duty. The car companies make money and pay high taxes, so there are multiple revenue streams for the government.

BUT they still choose to tax the end user in various ways. Who is anyway paying Income Tax, Sales Tax, Excise, Service Tax, Property Tax, Wealth Tax etc etc etc.

I vividly remember the "Gulf War Cess" on petroleum products a decade or more back. The Gulf war got over BUT the cess was never rolled back.

So basically the Government will tax us to death, but a "certain" section of people will still get away with filing returns of 3 lacs a year - interestingly they are never under scrutiny - for disproportionate assets.

I know of a certain "gentleman" from the Civil Services who has a house in any & every POSH colony of Delhi. He has been thru an "enquiry" as well, but surprisingly his son was making all the "money in business"

I know this post may be deleted or called off topic, because it probably is, but that would not change the truth.

P.S. Post #2222

Last edited by Ricky_63 : 26th May 2010 at 21:47.
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Old 26th May 2010, 22:04   #34
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I know why the Bangy guys are happy - sadist or whatever - Delhi is now trying to compete with Bangalore. Bangalore is still winning though!

Re. the hike itslef. It does nothing except add note wads to government coffers. I mean aside from generating taxation revenue this move is not going to do anything. People needing a car will buy a car - period. Infrastructure-wise and as a deterrant to buying vehicles, the high road taxes and fuel cesses have done nothing for Bangalore and likewise they will do nothing for Delhi as well.

Delhi government needs revenue - what with all the additional money going into Commonwealth Games related activities. When that budget shoots up by 200% the government doles out thousands of crores without any scrutiny. The hapless citizens are then taxed to recover that money. Hence diesel tax hike, road tax hike, CNG prices hike etc. etc.

We tax anything that moves - and anything that helps move a thing - Delhi govt (New motto).
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Old 27th May 2010, 10:51   #35
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Guys, No point ranting here. How about each of you send an e-mail to the relevant babu dudes in MORTH in the following list: Administrative Setup

You are complaining about Rs 6000 tax vs a 2% tax in neighboring states - these numbers are peanuts compared to many other states. Further vehicle taxes are not necessarily such a bad thing - I am probably in the minority here - they are the most effective tool against congestion. What we need is harmonization of lifetime taxes across states or a transition to yearly payment of taxes.

What is worse is a transfer between states - In Southern states, a move eg. from AP to KA (or vice-versa), will entail a payment of anywhere from 1% to 14% of the invoice value of the vehicle on transfer. Do this within a few months or endless harassment at the hands of traffic police and RTO officials.
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Old 28th May 2010, 21:56   #36
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What purpose would THAT solve ??

I sent emails from the CMD down to my insurance company's branch.

As the agent (development officer) had downgraded the valid insurance on my Merc from Comprehensive to 3rd party on his own whim.

It took me strings of emails & personal contacts to have the fellow apologise for the "oversight" & re-instate the policy to comprehensive. That was because the vigilance head took interest & "instructed" him to do the needful.

How many such cases do you know of ??

Brilliant suggestion - nonetheless.


Last edited by Ricky_63 : 28th May 2010 at 21:58.
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Old 29th September 2011, 08:57   #37
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Default Re: Road Tax in Delhi to hike from 1st April 2010!

I have got unconfirmed reports that the hike in Road tax for Diesel cars in Delhi is going to increase from today. The proposed hike had not been brought into practice till now. It seems from today the road tax is going to increase from the existing 10% to 12.5%. Anyone has any info on this? Unluckily I didn't get my newspaper copy today.
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Old 29th September 2011, 09:55   #38
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Default Re: Road Tax in Delhi to hike from 1st April 2010!

Yes, it;s confirmed . read it in Y;days Hindustan times.Below is the small news article on HT delhi

Planning to buy a diesel car? Get ready to pay more

Road Tax in Delhi to hike from 1st April 2010!-ht.jpg
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Old 29th September 2011, 11:52   #39
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Default Re: Road Tax in Delhi to hike from 1st April 2010!

i have been a victim of this hike. My scorpio will be delivered tomorrw as it reached the dealer last nite only and unfortunately I have to pay the higher road tax- DAMN!!
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