Team-BHP - 25% additional tax on diesel vehicles in Delhi

Will duty cut in automobile kit cheer the sector? - CNBC-TV18 -

Move to the 2nd part of the article and it states

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Another clarification was that, there is going to be a 25% additional tax on diesel vehicles sold only in Delhi. This will be a big blow as far as the diesel manufacturer’s or car makers are concerned.

Now what's the logic in this? You introduce this tax in Delhi and people will start buying vehicles from elsewhere in NCR if that's not included. If it is then they will move further out. Only the dealers would suffer because of this. And what does this achieve anyway? Are they trying to offset the cost of diesel subsidy? Then why penalize Delhites alone? What about the rest of the country? Are they any less guilty than Delhites?

PS: Mods could you please correct the subject. It's for diesel vehicles only

Looks likethis is being done to stop the rapid increase inthe sales of diesel cars.
Govt doesn't want to increase the diesel prices but needs to fill the deficit some other way and what better way than to tax at the vehicle sale stage itself. Anyways lets wait for the Govt notification on this before jumping the gun.

On a slightly different note, Delhi has the one of the lowest life time tax rates in the country.

Is this increase on tax gonna be 25% increase on the current registration tax or is it gonna be a 25% tax on vehicle itself. If it is the latter i can see a pretty big decline in demand for diesel powered cars in Delhi. Luckily most of the people who buy diesel cars are actually the ones who are either working or living in NCR...so maybe through some jugaad like registering the vehicle to some address in the NCR may still be the answer.

They are making diesel cars all the more inaccessible for Delhites, anways earlier people were running to Haryana for saving the road tax, now with the RT increased in Haryana, I guess if not all but a major proportion of people in and around Delhi will land up buying their DIESEL cars either from Haryana or UP.

The major reason I cite here is the volume of vehicles in Delhi, there are close to about 65 Lac registered vehicles in Delhi, which in other terms is more than Mumbai, Chennai & Kolkata put together.

People here in Delhi are increasingly moving towards the American concept of, the number of cars in a household should be equal (if not more) to the number of occupants.

God help us, buying a turbocharged Diesel is becoming a dream as the days pass-by.

Fellow BHPians any clue on the exact increase in prices for cars between 6-10 L ?

Happy Motoring !!

Due to inflation govt is not able to increase diesel prices as it affects all of the daily consumables most of us know it. However, what we do not know is that around 1998 Congress files a case in High Court that all diesel consumer vehicles should be banned from Delhi and only Petrol and CNG should be allowed (considering indraprastha gas is of big shot congress guy). With the recent price hike in daily items is last nail in the coffin of diesel in Delhi. Govt should rather look at way to make hybrid cheaper and reduce petrol prices when demand goes down (like summers), i have never seen petrol prices ever decline. Also if they want to do this they should first improve public transport drastically.

People who want to buy diesel will by diesel this is not going to curb sales in any manner and road taxes are controlled by state govt, my concern is would other states follow the trend?

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Originally Posted by Zero Cool (Post 2288454)

It looks to be 25% on current charges and hence it won't have major impact. Found this in ET-

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On the tax front, the additional levies on diesel will mean that cars and SUVs using that fuel could cost an extra Rs 4,000 at the bottom end of the scale and upwards of Rs 25,000 more at the premium end.

Link- Delhi Budget: Diesel vehicles to cost more, free healthcare for 27L kids - The Economic Times

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Originally Posted by asr245 (Post 2288431)

Then why penalize Delhites alone?

Makes me smile. Here in Bangalore we pay around 14% Road tax.
Now who is getting penalized Sir?

As others have said Govt can't really touch the Diesel prices in this era of inflation. So they took the easy way out. Increase the tax of the diesel cars. And in a way its fine also. An increase in the price of diesel will make inflation higher and common man will suffer.

Quote:

Originally Posted by asr245 (Post 2288431)

Then why penalize Delhites alone? What about the rest of the country? Are they any less guilty than Delhites?

To each their own. Mumbai has this concept of Octroi. ALL cars registered in Mumbai city/suburbs have to pay octroi. For some strange reason, Octroi is applicable only for Mumbai and no other city in the country.

We need an Uniform Tax policy on all vehicles/ products in this country.
We cannot be having this differential tax system across different states.
The same logic applies to Fuel and its surcharges etc.

If we are One Country why cant we have One Price as well? Especially considering that we have an MRP law where most consumer products - for example groceries, clothing etc have one single MRP across all states and Union territories. Why cant the same logic apply to Fuel, Vehicles and so on?

Why should there be differential pricing across States and with special considerations being given to Union territories? In what way are they any different to warrant such differential treatment?

Personally I welcome this move - it is about time the residents of Union Territories were taxed in the same way as the remaining states.

In all fairness to everyone we should seriously pitch to the Finance Ministry/ Central Government for a "One Country - One Price/MRP" policy.

+1 to Shankar

I always felt this increase of tax should happen on diesel cars because of the subsidy on diesel. But it should be all over India. If in future subsidy is removed this tax may go too (I dont see that happening!).

Remember, competition postcards introduced by the postal dept? I always felt that is a good model to cut loss on subsidy.

This is the best news I have heard in a long time. Hope they extend this to the whole of India. And I would have liked it better if it was 25% of the ex-showroom price. Would serve as a deterrent to people buying diesel cars to take advantage of subsidized diesel.