Diesel Cars To Get Dearer In Delhi

After the country budget was announced last month, Delhi budget for 2011-12 was revealed which has increased the price of the diesel cars in the capital. Delhi budget stated that an add on 25 per cent of tax will be levied on the present state tax on diesel auto mobile as mentioned in schedule-I of Motor Vehicle Taxation Act 2004.

Shiela Dikshit the New Delhi Chief Minister stated that as per the study conducted, many private vehicles and public transport use CNG, which is one reason the behind increasing the taxes. But looking at the increasing air pollution spread by diesel automobiles the increased tax has been levied.

National Cpaital Region (NCR) is the biggest auto mobile market of cars compared with the rest of the Indian auto mobile market. This particular region registers around 15 per cent of new cars which are rolled out yearly. The diesel fuel auto mobiles registers to be around 30 per cent of the accumulated sales. In a year almost 8 lakh diesel automobiles are rolled out yearly in India.

It is being highly speculated that the increase in the tax may result in effecting sales of the diesel cars like Mahindra Scorpio, Tata Indica and Maruti Swift. These vehicles are likely to be more expensive after the tax as recently these auto giants incraesed the car price.
These diesel cars and other vehicles are expensive by 15 per cent than the petrol variants as the engine technology and taxes levied are higher.

As per a statement given by a senior official at Maruti Suzuki India, he said that it will hamper the sales. It is not fruitful to put tax on one type of fuel. He also added that it is popular among the masses due to better acceleration and greater mileage.

Society of Indian Automobile Manufacturers revealed that the extra tax will have negative impact on the buyers regarding the particular fuel.

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