The government has been taking significant steps to promote electric mobility and support the sustainable development of the country. One such effort was to waive off the road tax on electric vehicles. Therefore, the Delhi Road Tax hike is suspected for all private and commercial vehicles equipped with an internal combustion engine.
As per the sources, the department of transportation in Delhi is in talks with the finance department to increase the road tax in Delhi. This move would promote the purchase of electric vehicles as they don't fetch any road tax. The finance department is working on the proposition and working out the details.
While purchasing a vehicle, the road tax in different states is implemented as per the desired tax slab. The road tax varies on multiple factors like the nature of the fuel used to run the engine, the price bracket and the dimensions of the vehicle. The road tax in Delhi currently varies vastly for individually private-owned vehicles ranging between 4% to 12.5%. The tax bracket for diesel vehicles is higher than petrol vehicles. A company-owned vehicle fetches a huge tax rate with more than 25% variation.
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As per the statistics, over the last decade, as the number of diesel vehicles sold was much higher than petrol vehicles, Bharat Stage VI emission norms did indirectly contribute to reducing the number of new diesel vehicles being purchased in the city as many automotive manufacturers were forced to ditch the Diesel engines due to strict emission regulations. Alongside, the scrapping rule for diesel vehicles terms the vehicle unfit for use after ten years of running on-road and the odd-even rule attempts to reduce the overall number of vehicles on road. Even though there were efforts made by the authorities, they aim at reducing vehicle emissions drastically to support the environment.
As per the policies today, both two-wheeler and four-wheeler vehicles equipped with an electric powertrain are exempted from paying this road tax. This was one of the initiatives taken to increase the adoption of electric vehicles in India. As electric vehicles are more expensive when compared to their internal combustion engine counterpart, levying a road tax on the electric vehicle would have led to the loss of sales figures in any way as the people would still opt for an internal combustion vehicle. The Delhi government aims to raise the share of electric vehicles on road by 25% by 2024.
As the government is losing the tax share of electric vehicles, the government plans to cover up this financial gap by increasing the road tax on new IC engine equipped vehicles. It is also suspected that the Delhi Transport Authorities are also looking into the possibilities of creating a new tax slab between Rs. 20-25 lakh to undertake luxury vehicles and increase the tax on them.
Also Read: Electric Vehicles Road Tax Exempted By Delhi Government - Approves Over 100 Models For Subsidy
So, what do you think about the Delhi Road Tax Hike? Would it be an effective move to increase the number of electric vehicles on road? Share your views in the comment section. Let's get into a discussion with this in our 91Wheels Telegram and 91Wheels Whatsapp group, where you can know more about vehicles, conduct discussions on your favourite ride, and much more! You can also subscribe to our Youtube channel for our exclusive video content on the latest from the world of cars and motorcycles. Also, connect with us on Facebook, Instagram, and Twitter for more about vehicles!
