Diesel Cars Might Become Costlier by INR 20-50k

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If you have thought of switching to a diesel car to get the better of rising petrol prices, this news might not be very pleasant for you. A former Planning Commission member and current Head of Integrated Research and Action for Development, Mr. Kirit Parikh has recently said that there is a proposal to impose an annual road tax on diesel cars.

If implemented, diesel car buyers will need to pay an additional tax of INR 50,000 on diesel SUVs and INR 20,000 on diesel cars.

The proposal is being thought over by the Finance Ministry and aims at reducing the increasing burden on Govt due to subsidy on diesel.

Mr. Parikh, however, has said: “Instead of looking at a one-time diesel tax on new purchases, the alternative could be to abolish the existing one-time road tax and make it annual and apply a differential between petrol and diesel vehicles”.

Society of Indian Automobile Manufacturers (SIAM) Vice-President, Mr. Vikram Kirloskar has reacted by saying that 45 percent of a vehicle’s selling price is already due to the tax and more tax is uncalled for.

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