Big setback for petrol, diesel car buyers! Tax crackdown looms large over Delhi

This is a bad news for the owners of petrol and diesel vehicles. Their desire to buy petrol, diesel vehicles is facing an imminent crackdown. The Delhi government has come out with ‘The Draft Delhi EV Policy 2018’ to speed up the adoption of Battery Electric Vehicles (BEVs) in order to make 25% of all vehicles to be EVs by 2023. The draft policy will focus on incentivising purchase and use of electric two-wheelers and supporting the electrification of public/shared transport.
 
The Draft Delhi EV Policy is reportedly under a 30-day consideration from the date of issue i.e, November 27, 2018, inviting suggestions from the concerned departments and the public. The move is to promote factory-fitted CNG cars and electric vehicle in the national capital to curb vehicular pollution.
 
The Aam Admi Party-led Delhi government has also decided to pass a proposal to introduce a 50% rebate on road tax and registration charges on factory-fitted CNG cars and electric vehicles. 
 
The draft reads as, “This policy will also seek to put in place measures to support the creation of jobs in driving, selling, financing, servicing and charging of EVs.” The draft which will be notified by the Government of the National Capital Territory of Delhi (GNCTD) will remain valid for five years (2018-2023) from the date of notification.
 
The draft policy “will apply exclusively to Battery Electric Vehicles (as defined in Annexure -1, FAME India). Mild Hybrid, Strong Hybrid and Plug-in Hybrid Electric Vehicles will not be targeted by this policy.”
 
The draft policy will also focus on incentivising the purchase and use of electric two-wheelers and supporting the electrification of public/shared transport.
 
Currently, two-wheelers account for two-thirds of new vehicle registrations in Delhi, and the most popular segment belongs to motorcycles between 110-125cc and scooters between 90-125cc. 
 
Further, the policy also talks about encouraging the usage of electric rickshaws, three wheeler goods carriers, app-based e-autos and e-cabs. 
 
Notably, for all sorts of first and last mile connectivity trips on e-cab/e-auto rides through an app-based aggregator, the Delhi government moots ‘cash back’ rebates, which will reportedly be capped at a maximum of 20% of the trip cost and an absolute value of Rs 10 per ride.
 
For extending subsidy, the Delhi government will also set up a ‘State EV Fund’ to meet large part of the incentives proposed in this policy. This State EV Fund’ will be collected through the measures given below: 
 
1. Parking surcharge: An air quality parking surcharge will be levied on Base Parking Fees (BPF) as defined under the draft Delhi Maintenance and Management of Parking Rules, 2017. It will be applicable on petrol and diesel vehicles only.
 
2. Road tax/Congestion fee: The government will also levy additional road taxes on diesel and petrol vehicles, especially luxury cars. While a congestion fee up to 2.5% on fare will be levied on all trips originating or terminating within Delhi. It will be charged through cab aggregators and ride-hailing services, but it will be waived for rides taken in an e-two wheeler, e-auto or e-cab.
 
3. Pollution Cess: All petrol and diesel-powered vehicle users will have to pay this cess on the sale of fuel beginning April 2019.
 
Meanwhile, the draft policy also takes into account charging infrastructure as a key driver of EV adoption and will work towards enabling both private and public EV charging points. 
 
The policy paves way for 100% subsidy on installation of charging point up to Rs 30,000 per charging point for the first 10,000 points at residential or non-residential buildings.
 
Talking about the draft policy, Delhi Transport Minister Kailash Gehlot told media, "Rapid adoption of zero-emission electric vehicles is, therefore, of great importance to Delhi." 

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He further said that the Delhi government would "amend building bye-laws to ensure both home and work place parking becomes EV ready through mandatory installation of charging conduits."