Delhi government to hike car prices to promote EVs

Apr 20, 2022 1 min read
Delhi government to hike car prices to promote EVs

Delhi government is finding ways to make petrol, diesel and CNG vehicles more costly. The increase in prices of cars will promote the sales of electric buyers, which are quite expensive as compared to petrol vehicles.

As per the sources, the government will propose increase in road tax on various categories of vehicles to the finance department of the state. Once it is approved, the transport department will work on a detailed plan.

Currently, the plan is in initial stages. Depending upon the segment, the road tax lies between 4% and 12.5% in Delhi. It depends on size, price band, and fuel type of vehicle. The estimated earnings from road tax is around Rs 2,000, 4% of the estimated total tax revenue.

In Delhi, the total number of new vehicles are increasing and the officials expect that this will show hike in road tax collection too.

It is also said that the government is planning to bridge the difference by the no registration tax on electric vehicles.

With the increasing number of electric cars, the government is losing out the money. Also, they won't charge any tax on electric vehicles.

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