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Diesel car prices may increase by Rs 2.55 lakh if special tax is imposed
Posted on 13 Jun 201222,274 Views6 Comments
The oil ministry is planning to impose a special tax on diesel passenger vehicles to balance the gap between demand for petrol and diesel vehicles.
Diesel cars may get expensive by Rs 2.55 lakh, with the oil ministry planning to impose a special tax on such vehicles. The government plans to impose additional levies of Rs 1,70,000 on small diesel cars and Rs 2,55,000 on medium and large diesel vehicles like sedans and SUVs to check dieselisation of the economy, triggered by the widening gap between petrol and diesel prices.
"The oil ministry has asked the finance ministry to impose additional excise duty on diesel cars and the matter is under consideration," a government official said.
Diesel cars are more fuel efficient than petrol and offer 30% more mileage, which has prompted many to opt for such cars. Besides, diesel price has been frozen in the country for almost a year due to political compulsions that has made it almost 74% cheaper than petrol. Helped by this increasing price differentiation, sales of diesel cars have zoomed to over 55% of the total 1.63 lakh units sold in May this year, up from mere 38% last year.
Oil ministry officials confirmed that its proposal to impose tax was "favourably" considered. "The money thus raised could be used to meet part of the under-recoveries (revenue losses of state oil firms in selling fuels below market rates)," an oil ministry official said.
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Readers' opinions ( 6 )
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deepak
hey is d tax rate or d price of d car going to be increased on 2013. could you pls help me out pls ..............
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siva
Now a days even Expensive cars like BMW, AUDi....all are having yelow board where the tax is 2000-2500 per year where is the white board tax going, First these govt people should change the system, not the prices....
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KIRTHIGA
already there is the difference in price of diesel and petrol cars by 1 lakh. if they add special tax of 2.77 lakh, then the difference of diesel and petrol cars will be nearly around 3 lakh. how a middle class people can the diesel car.????????? and the other thing, rise of diesel. if both diesel and diesel cars price hike, the people who booked for cars will refuse to buy and automobile industry leads to loss of selling diesel cars too.. GOVERNMENT SHOULD CONSIDER ALSO THE SITUATION OF MIDDLE CLASS PEOPLE!!!!!!!!!!!!!!!!!!!!!!!
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Saurabh Girdhar
What a nuisance? Instead of trying to curb oil prices, they are hiking the prices of vehicles. This will eventually result in slowing down of the automobile industry which is already facing crisis due to petrol price hike.
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arvind
The govt should reduce the tax on petrol cars and let the car manufacturers bring more refined and luxurious petrol cars which are efficient and cleaner into our country at a much lower price. BMWs etc are sold at twice their price in India. If you get such cars in half the price they are sold at (which is possible if the govt reduce the duties), people will definitely buy them and demand for the big diesel car will fall.
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