Saturday, May 29, 2010

Increase In Road Tax On Two-Wheelers Purchased In Delhi Is not Well Thoughht Decision

Delhi Government recently decided to increase the road tax on the vehicles registered in Delhi. As per the plan the rate for cars, priced up to Rs.6 Lakh is doubled to 4%, for cars between Rs.6 Lakh and Rs.10 Lakh it is upto 7%, while for cars costing Rs.10 Lakh road tax is 10%. It is very high when compared to existing 2% of the vehicle value but I still believe it is the right step taken (with wrong thought process though). What concerns me more is that the road tax percentage for two wheelers has been increased to upto 6%. As per the plan prepared by Delhi Govt. (Pay attention Ms. Dixit) two-wheelers costing up to Rs.25,000 will be charged the existing 2%, while those costing between Rs.25,000 and Rs.40,000 will now attract 4% and those above Rs.40,000 will be charged 6%. I am just curious how many two-wheelers in Delhi today are available for Rs.25,000 or Less. Do you remember Luna (or Loon Naaa), even Luna costs Rs.25,000. Thus what essentially Delhi Govt. has done is increased the road tax rate for practically all the vehicles.

In Ms. Dixit's view the step will discourage the use of private vehicles. So if the road tax is increased there will be reduction in the purchase of vehicles thus lesser traffic. Well by this logic raise the food prices there will be lesser obesity (oops did I trigger another price rise?). They work on the concept of "Discourage use of private vehicles" while the concept should be "Encourage use of public transport". Provide a better public transport and people will automatically leave their cars behind. I have earlier also written about the same subject and today after I have spent a lot of time thinking, still stand for this logic. God please forgive them because they do not know what they are doing.


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Rajeev Lochan Sharma