Zeebiz Bureau
New Delhi: Buying a diesel vehicle in Delhi just got expensive. In a bid to contain the pollution in the capital city the state government raised the Value Added Tax (VAT) of diesel cars by upto 12.5 percent. The hike was proposed by Chief Minister Shiela Dikshit in her State Budget speech Tuesday here.
Now, diesel vehicles costing upto 6 lakhs will be charged 5 percent VAT, 6-7 lakhs at 8.75 percent and those costing above 10 lakhs will be charged at 12.5 percent.
The chief minister also proposed levying an additional tax of 25 percent of existing tax rates on diesel-propelled vehicles specified in the schedule-I of the Motor Vehicle Taxation Act 2004.
"...many studies have pointed out that in spite of the use of CNG in all public transport vehicles and also by many private vehicles in Delhi, the growing number of diesel vehicles is adding to air pollution," she said making the tax proposals.
Terming cycling to be a healthy and non-polluting mode of transportation which "needs encouragement and protection of the government", Dikshit proposed to give relief to the "aam-aadmi's preferred mode of commutation" by removing VAT on bicycles having an MRP of upto Rs 3,500.
With PTI inputs
First Published: Wednesday, March 23, 2011, 01:02