These cars on Delhi roads may get massive 50 pct road tax discount; here is why

The transport department has prepared a proposal for the rebate in addition to a 50% concession in registration charges, the report said, adding that the plan was announced by the Aam Aadmi Party (AAP) government in its latest Budget. The department has sent the proposal to Gahlot for his deliberation.

In a bid to curb vehicular pollution in the national capital, the AAP-led government is mulling introduction of a 50% rebate on road tax for those who buy factory-fitted CNG cars. Image source: PTI

In a bid to curb vehicular pollution in the national capital, the AAP-led government is mulling introduction of a 50% rebate on road tax for those who buy factory-fitted CNG cars. The move is also likely to boost sales of the environmental friendly cars, said a Hindustan Times report, quoting Delhi's transport minister Kailash Gahlot.

The report said that the average road tax for four-wheelers in Delhi ranges between Rs 18,000 and Rs 20,000. The tax slab differs for various categories of four-wheelers — 4% on cars up to Rs 6 lakh, 7% on cars above Rs 6 lakh and up to Rs 10 lakh and 10% for cars priced above Rs 10 lakh.

The transport department has prepared a proposal for the rebate in addition to a 50% concession in registration charges, the report said, adding that the plan was announced by the Aam Aadmi Party (AAP) government in its latest Budget. The department has sent the proposal to Gahlot for his deliberation.

The minister told HT, “The concession in road tax must act as a direct incentive for car buyers to opt for CNG. The proposal is yet to go to the Cabinet. We intend to offer similar benefits in the electric vehicles policy, which is under process. We hope to implement both by this winter.”

A senior Delhi government official, who asked not to be named, told HT that a proposal to formulate a policy of granting concession in road tax for private CNG cars was sent to the minister around a week ago. The proposed scheme is in addition to the 50% waiver on registration fee of factory-fitted CNG cars, he added.

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The move aims to reduce vehicular pollution by encouraging people to buy CNG cars which eco-friendly alternative to petrol and diesel. According to official figures, more than 1.8 lakh private cars were registered in Delhi between April 2017 and March 2018. Of this mammoth number, merely 14,824 were reportedly CNG-fitted units.

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