With an aim to encourage the use of battery-operated vehicles in the city, the administration has decided to abolish the road tax on them. A decision in this regard was taken during a high-level meeting held here on Monday and the notification in this regard is expected in a day.
Last year, the Chandigarh administration had reduced road tax on battery-operated vehicles from 6% of the total cost of the vehicle to 3%. Now, it has been waived off completely.
The decision to do away with the road tax comes exactly a year after the administration had removed VAT on the battery operated vehicles. VAT of 12.5% used to be charged earlier.
The sources in the administration said the decision to abolish the tax was taken to promote vehicles which are emission free and encourage more and more people to go for these vehicles.
Confirming the development, director transport, Amit Talwar, said, “It has been decided to waive off road tax on battery-operated vehicles and the notification will be issued in a day in this regard.”
He said the decision will help reduce air pollution and will encourage eco-friendly modes of transport.
The administration is also going to promote the use of e-rickshaws in the city. The sources in the administration said there are not many battery-operated four-wheelers, but there will be. However, the use of two-wheelers is picking up.
For diesel and petrol four-wheelers costing up to ₹20 lakh, there is 6% tax, and for vehicles costing more than ₹20 lakh, the tax is 8%.