Good for EV but bad news for the rest, road tax hike coming

In order to drive rapid adoption of Electric Vehicles, Delhi government is exploring the possibility of increasing the road tax on private and commercial vehicles.

According to reports, the prices of cars, SUVs and commercial vehicles in Delhi may go up as the transport department proposes a hike in road tax of some categories of vehicles.

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Road tax on vehicles to make EVs more lucrative

The proposal for raising road tax on specific categories of vehicles has been forwarded by the transport department to the finance department.

Depending on the vehicle's fuel variant and price band, road tax in Delhi varies between 4% and 12.5% on individually owned private cars.

The road tax on private vehicles in Delhi is presently up to 12.5 per cent depending on fuel type and price range.

No tax for Electric Vehicles

Under the Delhi Electric Vehicles Policy, which was announced in 2020, EVs — both two-wheeled and four-wheeled — are exempted from paying any road tax.