Delhi Government Proposes 50 Per Cent Less Road Tax For New CNG Vehicles

With the festive season approaching and pollution levels expected to spike in Delhi and most of north India once again, any approach towards reducing it is welcome. According to reports in HT, the Delhi Government plans to form a proposal by which it will offer a 50 per cent less reduction in Road Tax for brand new CNG vehicles that come with factory fitted CNG kits. It hopes this move will help promote the use of CNG vehicles, as compared to the standard petrol or the more popular diesel options. This move, if implemented could mean that cars could become cheaper due to cheaper taxes while registering them. This however will have no effect on ex-showroom prices.

(Maruti Suzuki Ertiga CNG)

Road tax in Delhi is calculated in three different slabs, 4 per cent of the ex-showroom value for cars up to Rs 6 lakh, 7 per cent of the ex-showroom value for cars between Rs 6-10 lakh and 10 per cent of the ex-showroom value for cars upwards of Rs 10 lakh. The reduction in this road tax could mean a considerable reduction in cost to the customer - especially in the case of larger CNG cars like the Maruti Suzuki Ertiga. This could also encourage more manufacturers to launch CNG versions of their cars to the Indian market as in recent years, the number of factory fitted CNG cars launched in India has drastically reduced.

In the Delhi Government's budget speed in March 2018, Manish Sisodia, Deputy Chief Minister, Delhi, had proposed a 50 per cent concession in registration fee for all new CNG (private) cars in Delhi. However, the 50 per cent reduction in registration fee is nearly inconsequential considering the fact that the average registration fee per car in Delhi is less than Rs 1000.