If you are thinking of buying a luxury car or a two-wheeler, be prepare to shell out more. Driving private vehicles in Delhi will soon become costlier as the Delhi government on Monday approved a proposal on the new road tax rates.

According to the cabinet's decision, two-wheelers up to the cost of Rs 25,000 will be charged at the rate of 2% tax as was being done earlier. While those costing between Rs 25,000 and Rs 40,000 will be charged at the rate of 4% tax. And two-wheelers costing above Rs 40,000 will be charged at 6% tax.

As far as the cars are concerned, vehicle in the non-luxury section will have reasonable road tax rates. Those costing up to Rs.6 lakh will be charged at 4%,(like a Maruti Alto). And those between Rs.6 lakh to Rs.10 lakh will be charged with tax at 7%. And for the cars costing above Rs. 10 lakh (like a Honda Civic),  it will be charged at 10% tax rate. The new rates will come into force after issue of a notification.

With already 6 million vehicles in the city and additional 1000 registration everyday, causing huge traffic jam, Chief Minister Sheila Dikshit said that the new rates will help in restricting purchase of luxury cars and will also discourage use of private vehicles.

Dikshit also said that the the rates prevalent in the neighbouring states were considered before taking the decision. Meanwhile, the rates on public utility vehicles like public goods careers, will not be changed.