Home News Automobile Industry Road Tax In Chandigarh To Cost 50% Of Car’s Price Effective January 2018

Road Tax In Chandigarh To Cost 50% Of Car’s Price Effective January 2018

The vehicles priced at Rs 10 lakh or above will attract a hefty road tax, accounting to 50 per cent of the vehicle’s total cost.

  • Shilpa Chopra
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Traffic India

To discourage residents in Chandigarh from buying more cars, authorities have proposed to implement stringent measures. More vehicles demand more parking space and while there is scarcity of place to facilitate parking of new vehicles, a new policy is underway that is set to increase prices of the new cars in Chandigarh. To cut it short, vehicles priced at Rs 10 lakh or above will attract a hefty road tax, accounting to 50 per cent of the vehicle’s total cost.

Currently, the road tax is set at 6 per cent of the vehicle’s price, which implies there will be a sharp increase by a little over 8 folds in the road tax. A similar tax will be levied on the purchase of second vehicle by a household and the buyers will be required to submit a certificate of parking space at the time of registration. Not just this but the buyers will have to obtain a certificate of entitlement(COE) from the administration by paying a prescribed fee which will allow them to register and use vehicles within the city for 10 years. Furthermore, the organisers of the event within sectorial grid will have to arrange shuttle service from vital locations to the venue. Read – Delhi Set To Get BS6 Fuel Ahead of April 2020 Deadline

This parking policy will be implemented in the entire city barring villages. The inspiration behind the stern measure has come from the failed concept in Singapore. It is primarily to curb the number of cars sold in one quarter.

Although, the residents in Chandigarh do not seem happy with the draft parking policy chalked out by the UT administration. The automobile agencies (including car and two-wheelers) in the city are fearing a drop in the sales if the policy is implemented.  Read – Get Your Vehicle Insured Or Get Behind The Bars

While it is just a draft policy, the officials at UT finance have invited the public to give suggestions, objections or inputs before the policy is finalized. The residents can send in their objections/suggestions at [email protected].

Most of the key features in the draft policy have been mentioned above, here are some of the important ones. It also emphasis on introducing concept of congestion pricing and making bus services mandatory for companies having more than 50 employees. Under the policy, the administration has also proposed to levy working place parking, introduction of community parking, more parking change for outside vehicles and 50% rebate in property tax on houses with parking space.

 

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