Car prices rise in Uttar Pradesh | india | Hindustan Times
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Car prices rise in Uttar Pradesh

india Updated: Oct 30, 2009 00:17 IST
Peeyush Khandelwal
Peeyush Khandelwal
Hindustan Times
Highlight Story

If you buy your Maruti Suzuki Zen Estillo Vxi from Gurgaon instead of Ghaziabad, the money you save will buy enough petrol to drive over the Golden Quadrilateral twice over.

In fact, you will still have some fuel to spare.

If you register your cars in Noida and Ghaziabad towns, be ready to shell out more.

Vehicles here would now be taxed according to their weight as per the revised Road tax structure of the Uttar Pradesh (UP) government for private and commercial vehicles, including cars and two-wheelers. The rules became effective from October 28.

The new tax structure would not discriminate between petrol and diesel vehicles and cars would be charged according to their unladen weight under different slabs.

As per the new tax regime, two-wheeler owners will be charged a one-time tax (15-year tax) at the rate of 5 per cent of the vehicle cost.

“This was earlier charged a flat rate of Rs 1,500 for two-wheelers,” said regional transport officer (RTO) Lalji Chaudhary.

Cars would now be charged on the basis of their unladen weight, irrespective of whether they run on petrol or diesel.

“Petrol and diesel vehicles were earlier charged at 2.5 per cent and 5 per cent respectively. Now, cars up to 1,000 kg of unladen weight would be charged 5 per cent of the cost of the vehicle,” Chaudhary said, adding there were more slabs on the basis of weight.

If a new car, up to 1,000 kg of unladen weight had to pay a one-time road tax of Rs 25,000 earlier, the new rate would be Rs 50,000.

“The significance of the weight of the vehicle has now increased more. The more luxurious the car, the more tax you would have to pay,” an official said.

It is estimated that most luxury cars would fall in the higher tax slab of 6 per cent and the small cars would come under the 5 per cent bracket. As per an official source, the impact of the new tax rates would see less registrations coming in.

“There is a tendency of the people to get their vehicles registered in the area where the tax is low. They may move to Delhi or Haryana if the tax rates are lower. This would affect the incoming revenue to UP,” said Harpreet Singh, a resident.

The RTO said that the rates have been revised after 1998.

“This was required as the state is providing more facilities and better road conditions to the vehicle owners. The increase is marginal and is based on the ability to pay. There would be minimal impact on their pockets. It has become more rational now,” the RTO added.

Vehicle owners disagreed.

“This is just another way of gobbling money. If the UP government is charging more in road tax, it should ensure roads are in proper condition. People are willing to pay tax if it is spent on basic amenities,” said Sita Sharma, an IT professional living in Indirapuram, Ghaziabad

“Higher road tax will dissuade people from registering their vehicles in UP. Delhi is just next door. People will find an address in Delhi and get their cars registered there. So how does it help the UP government?” said Rajeev Ojha, a resident of sector 56, Noida.

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