Chandigarh Road Tax Draft Policy – 50% Tax on Cars Above INR 10 Lakh

Chandigarh Road Tax Draft Policy – 50% Tax on Cars Above INR 10 Lakh: In order to deal with the increasing traffic congestion, chaos and the parking problems, the UT Administrator have once again come up with an out of the box plan which we must say is rather appalling and utmost impractical.

This time, they have come up with a new draft policy that will hike the road tax for buyers of high-end cars. Residents who buy cars costing Rs 10 lakh and above will have to pay 50% of its price as road tax.

That’s not it. If you buy a second car, irrespective of the price, you will have to pay 50% of its price. The existing policy charges 6% as road tax for vehicles costing up to Rs 20 lakh and 8% for vehicles above Rs 20 lakh.

Former MP Pawan Kumar Bansal called the policy unfair and skewed. “How can the authorities put a cap on sale of vehicles? They have copied the failed concept from Singapore. The decision will have an extremely negative impact on the already plummeting economy,” he said.

Automobile agencies are rather seeing the proposal totally worthless and fear if the proposal gets the stamp for implementation, it will lead a direct impact on the sales of the cars and their business will suffer a negative impact.

Explaining the concept, UT senior town planner Gurmeet Kaur said a cap would be imposed on number of cars that can be sold in the city in three months. Those interested in purchasing a car will have to buy a certificate of entitlement (COE) from the administration after paying a prescribed fee. The certificate will grant the person legal right to own, register and use vehicles within the city for a period of 10 years.

At the time of registration of the vehicle, owners will have to submit a certificate of availability of parking space.

In addition to the parking measures, the UT administration is also planning to introduce congestion charges in specific areas of the city. Also, vehicles registered outside of Chandigarh, Punjab or Haryana will have to pay a 50% higher parking fee. Companies with more than 50 employees will have to provide bus service.

UT finance secretary Ajoy Kumar Sinha said, “It is just a draft policy and we have invited objections from general public. Based on suggestion\objection received from general public changes will be made. The policy will not be finalized without taking inputs from residents. We are open to suggestions” .

Update Source: The Tribune