Delhi to Increase Road Tax on Vehicles To Clean Up Air Before Sporting Competition

NEW DELHI—The government of the National Capital Territory of Delhi has announced that it will raise the registration fee, or road tax, for cars and two-wheel vehicles starting in June in an effort to discourage vehicle use and improve air quality.

The Cabinet of Ministers May 24 decided that owners of two-wheel vehicles costing more than 25,000 rupees ($543) will pay a 4 percent tax. Owners of less expensive models will pay 2 percent.

Owners of cars costing up to Rs 6 lakh ($13,043)—considered low-range—will pay 4 percent, twice the tax they have been paying. Owners of mid-range cars costing ...