Planning to buy a new car? All vehicles in Delhi likely to be pricier except EVs

  • Electric vehicles will continue to get tax benefits in Delhi under the Delhi EV Policy 2020.
Private vehicle prices powered by petrol, diesel or CNG are expected to be pricier.  (AP)
Private vehicle prices powered by petrol, diesel or CNG are expected to be pricier. 

Road tax for new vehicles in Delhi is likely to increase soon, as the Transport Department of the Delhi Government has recommended increasing the rates. If the recommendation is approved, the cars will become costlier in the national capital, reports Live Hindustan. All the petrol and diesel-powered vehicles are supposed to become pricier under the proposed rod tax regime. However, electric vehicles will continue to enjoy the benefit of tax relief under the Delhi EV Policy 2020.

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The report claims that commercial vehicles, hatchbacks and SUVs will be impacted due to this price hike. It also claims that the Delhi Transport Department has set a target of raising 2,000 crore from taxes and duties in the financial year 2022-23.

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It is not clear yet what will be the extent of the road tax hike if the Transport Department's recommendation is approved. Currently, the Delhi Government levies road tax on private vehicles ranging between four per cent and 12.5 per cent, depending on various factors such as mode, fuel type and price range. If a vehicle is purchased in the name of a company, the road tax on that vehicle increases to 25 per cent. Expect the road tax to be increased on the same basis.

The electric vehicles will be exempted from the road tax, as per the Delhi Government's announcement made under the Delhi EV Policy 2020. The Delhi Government aims to increase the new electric vehicle registration to 25 per cent by 2024, with a target to control vehicular pollution through this strategy.

The proposal of the road tax hike in the national capital comes at a time when the fuel price is at an all-time high range. Apart from that the economic disruption too has impacted vehicle sales. The recovery of automobile sales would be impacted due to the road tax hike, as it may hinder many consumers from buying a new vehicle.

First Published Date: 19 Apr 2022, 18:11 PM IST

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