The first day of the new financial year,April 1,is going to pinch the pockets of those getting their vehicles registered from Monday onwards as the Registering and Licensing Authority has increased the road tax in the city significantly.
While for registering a four-wheeler costing upto Rs 20 lakh,one will have to shell out a whopping 6 per cent,for registering a four-wheeler costing above Rs 20 lakh,one will have to pay 8 per cent of the cost of the vehicle as road tax.
With this,the three existing slabs 2 per cent for vehicles costing up to Rs 6 lakh,3 per cent for vehicles priced between Rs 6 lakh and Rs 20 lakh,and 4 per cent for vehicles priced above Rs 20 lakh have been abolished.
Similarly,for two-wheelers costing upto Rs 1 lakh,one will have to pay 3 per cent,and for two-wheelers costing between Rs 1 lakh and Rs 4 lakh,one will have to pay 4 per cent as road tax,and for those costing above Rs 4 lakh,one will have to pay 5 per cent of the cost of the vehicle as road tax.
The significant hike in road tax has brought the UT on a par with the neighbouring state of Punjab while Haryana proves to be the cheapest when it comes to paying road tax.
The move of the UT Administration to hike the road tax is in consonance with a view to rationalise the motor vehicle tax. The UT Administration had proposed an increase in the road tax recently and the same was approved by the UT Administrator on Sunday. Last time,the tax was increased in February 2011.
In fact,the Centre had been suggesting one-time road tax at a rate of 6 per cent on the sale price for cars and two-wheelers to rationalise the motor vehicle taxes across the country for a long time now.
UT Deputy Commissioner Mohammed Shayin said the UT wanted to be on a par with the neighbouring states.
Haryana had recently hiked the road tax wherein for four-wheelers,including cars,owners will have to pay tax at the rate of 3 per cent for vehicles costing up to Rs 6 lakh. The rate of 6 per cent will be applicable to cars priced between Rs 6 lakh and Rs 10 lakh. For cars priced above Rs 20 lakh,the rate of tax will be 9 per cent. The tax will be levied on ex-showroom price of the vehicle including VAT.
Previously,vehicles up to Rs 5 lakh were charged 2 per cent,vehicles costing Rs 5-10 lakh 4 per cent,vehicles costing Rs 10-20 lakh 6 per cent,and vehicles costing above Rs 20 lakh 8 per cent.
Incidentally,the Punjab government has already revised its rates and has been charging a minimum motor vehicle tax of 6 per cent on four-wheelers since 2012.