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Sale of vehicles may see a spurt

By Our Staff Reporter

NEW DELHI, JULY 22. The rush for buying vehicles especially diesel ones is likely to increase during the next few days in view of the new tax regime expected to come into force here from August 1. The proposed new ad valorem road tax system along with 2 per cent additional tax on private diesel vehicles would ensure an across-the-board increase in the cost of all category of vehicles in the Capital.

At present, the road tax in Delhi is charged on the basis of the laden weight of the vehicle. With the shift to ad valorem regime for road tax, vehicles costing up to Rs. 4 lakh will have to pay 2 per cent road tax on the total cost and those beyond the Rs. 4 lakh mark will have to pay 4 per cent road tax. This is likely to fetch the Delhi Government additional revenue of Rs. 80 to Rs. 90 crore. For the private diesel vehicles, these will cost even more with the imposition of a 2 per cent additional tax that is being referred in the Government circles as environment cess.

For instance, at present a Maruti 800 attracts a road tax of Rs. 3,815. But under the regime it will have to pay around Rs. 4,000 now. Similarly, Maruti Alto pays a road tax of Rs. 3,815 at present but will have to shell out Rs. 5,700 as road tax. Similarly, a Wagon R standard presently pays Rs. 3815 as road tax will now attract a road tax of Rs. 6,500. For the Maruti Zen (Diesel), with a cost price of Rs. 3.65 lakhs will attract a road tax of Rs. 7,300. It will have to pay an additional tax of two per cent diesel cess, which will raise the cost of the vehicle to Rs. 3.73 lakh. However, the luxury models of these vehicles, which cost more than Rs. 4 lakh would attract a road, tax of 4 per cent. The most hit will be the Tata Indica and Tata Indigo vehicles produced by Tata Motors who will have to take the additional burden of two per cent diesel cess on private vehicles.

The Esteem Diesel that costs around Rs. 4.78 lakhs without the road tax of Rs. 4,800 will now have to pay Rs. 19,000 as road tax and will cost around Rs. 5.07 lakhs with a diesel cess of two per cent. As for the luxury category and multi utility vehicles including sedans like Mercedes, Honda Accord, Mitsubishi Pajero, Tata Safari, Maurti Grand Vitara, Honda CDR, the road tax is around Rs. 7,000.

This will go up substantially with a 4 per cent road tax on their total value and also a two per cent additional diesel cess. For instance, a Grand Vitara costing Rs. 16.16 lakhs will attract a road tax of around Rs. 64,000 and two per cent attracts diesel cess taking the total cost of the vehicle to around Rs. 17 lakhs.

A Mitsubishi Pajero costing Rs. 18.69 lakhs will attract a road tax of around Rs. 74,000 and also the diesel cess of two per cent.

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