Luxury cars to be costlier in Chandigarh

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Chandigarh, Jan 17 (PTI) Buying a luxury car likeMercedes, Audi or BMW is going to cost you more here with cityadministration proposes to levy higher rate of road tax onhigh-end vehicles costing above Rs 20 lakh.

After the implementation of the proposal, the luxury carshere will be costlier than in Punjab but cheaper than inHaryana.

Haryana charges eight per cent road tax on cars costingover Rs 20 lakh while Punjab levies two per cent road tax onthe cost of vehicle.

The Union Territory administration has proposed toreplace the current levy of road tax by introducing three newslabs whereby tax will be calculated on the cost of vehicle asis being followed by the neighbouring states of Punjab andHaryana.

According to the proposal, the administration hasproposed to levy two per cent tax on the cars having cost upto Rs six lakh.

In the second slab, the three per cent of lump sum taxwill be charged on cost of vehicle between Rs 6 lakh and Rs 20lakh.

Car owners buying vehicles more than Rs 20 lakh will bepaying highest rate of tax at four per cent. "The proposedrates of road are expected to be implemented by thismonth-end.

As the concerned authorities are in the process ofupgrading their infrastructure to implement the new rates," anofficial of Registering and Licensing authority said.

Currently, the road tax is being calculated on the basisof the seating capacity of the vehicle and the levy varies Rs1,800 to the maximum of Rs 2,500.

Over 40,000 cars are registered every year in Chandigarhand it has the highest vehicular density in the country withownership of car per 1,000 population is 82.

Notably, the Haryana government raised the road tax oncars substantially on January 13 with a maximum rate of taximposed on cars costing above Rs 20 lakh.

In Haryana now, road tax of two per cent is being chargedon car costing up to Rs five lakh while four per cent on carvaluing between Rs 5 and Rs 10 lakh.

Thereafter, six per cent on cars costing more than Rs 10lakh up to Rs 20 lakh and eight per cent on car valuing morethan Rs 20 lakh.

Without any slab, Punjab charges flat rate of two percent of the cost of vehicles as road tax.

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