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Toll tax to go up for commercial vehicles in Delhi

Staff Reporter

NEW DELHI: To neutralise the impact of increase in wholesale price index and to generate additional revenue, the Municipal Corporation of Delhi has approved a proposal to increase the toll tax rates on commercial vehicles entering the city by 17 to 28 per cent under different categories.

The decision was taken at a meeting of the civic body's Standing Committee on Wednesday despite strong protests by the opposition Congress which alleged that the BJP-led MCD was hiking rates in an “unprecedented manner”. The decision would, however, come into effect only from May next year when fresh tenders would be floated after expiry of the contract for the current company roped in by the MCD to collect toll tax on its behalf.An MCD official said: “The civic body, which has outsourced collection of toll tax, plans to float a new tender for awarding contract for it under the new rates. The new tender will commence from May 16, 2011, and the rates would be applicable from that time at all toll points within the jurisdiction of Delhi.”

Last time the toll tax rates were increased in the Capital was in May 2008. In the last two years, MCD has generated revenue of close to Rs.200 crore from toll tax. After the approval of the hike proposal, the civic body expects an additional Rs.40 crore from the tax annually.Municipal Commissioner K. S. Mehra said: “This proposal to increase the toll tax is linked to the wholesale price index which has increased by 17 per cent. To neutralise its effect and ensure that there is no obstruction in fixing the minimum reserve price for process of tendering to be undertaken in the coming few months for toll tax collection this proposal was presented before the Standing Committee. We have ensured that the increase in rates is well within the limits prescribed to us by the Delhi Government.”

As per the proposal, taxi, tempo, Tata-407 and other such type of commercial vehicles which are presently paying Rs.35 as toll tax per entry would have to shell out Rs.45 and bus, truck, Nissan, Tata-709 or canters and other such vehicles which are paying Rs.70 at present would have to pay Rs.85. The rate for six-wheel truck has also been hiked from Rs.140 to Rs.165, that for 10-wheel truck from Rs.280 to Rs.330 and for 14-wheel truck from Rs.700 to Rs.820. The MCD, however, clarified that the hike would not be applicable for non-commercial vehicles, ambulances, fire-fighting vehicles, police vehicles, government vehicles having red and amber lights, defence vehicles and hearses.

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