The Budget for financial year 2011-12 for the national capital has made diesel run cars costlier. The government, however, has reduced duty on bicycles, lanterns, kerosene stoves and sanitary napkins. Moreover, the budget that was presented on Tuesday will also make tobacco products, furnishings, suitings and sweetmeats costlier for the residents of Delhi.
The Delhi Budget 2011-12 proposes an additional 25% levy on existing state taxes on diesel-propelled vehicles which are specified in the schedule-I of the Motor Vehicle Taxation Act 2004. While commenting on the decision of enhanced taxes on diesel-run vehicles, Chief Minister Shiela Dikshit said, “many studies have pointed out that in spite of the use of CNG in all public transport vehicles and also by many private vehicles in Delhi, the growing number of diesel vehicles is adding to air pollution."
It is to be mentioned here that National Capital Region (NCR) is the largest market for cars in the country as it accounts for about 15 percent of the total new cars sold in the Indian market per annum.
