Govt may charge higher tax on second car | delhi | Hindustan Times
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Govt may charge higher tax on second car

When it comes to finding ways to dissuade people from buying new cars, the bureaucracy and politicians keep coming out with new ideas.

delhi Updated: Jan 22, 2010 00:34 IST
HT Correspondent

When it comes to finding ways to dissuade people from buying new cars, the bureaucracy and politicians keep coming out with new ideas.

This time, Delhi transport minister Arvinder Singh Lovely has mooted the idea of increasing the road tax on cars being bought by anyone who already owns one car.

“If people can afford two cars, they can easily pay more taxes also,” Lovely said.

Lovely, however, added that it would be done only after Delhi has a fleet of 10,000 buses running on its roads. “We hope that it (increased road tax) will help people shift to the public transport,” he added.

The minister said the transport department will soon send a proposal in this regard to the Delhi government.

The idea comes barely a few days after the transport department officials revealed that they were contemplating raising the road tax on luxury vehicles.

The transport department currently charges two per cent of the vehicle cost on vehicles worth less than Rupees 4 lakh and four per cent on vehicles costing more than Rupees 4 lakh as road tax.

Of the 56.27 lakh vehicles registered in Delhi till March 31, 2008, 53.08 lakh were private vehicles including 35.78 lakh two-wheelers and 17.30 lakh four wheelers.

More than 1,000 new vehicles hit Delhi roads daily.

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