The Delhi Government has increased VAT on diesel cars by 25%. The increased VAT will be charged at the time of registration. The VAT application is different for various price points with cars upto Rs. 6 lakhs being charged 5% VAT against 4% earlier, cars between Rs. 6-10 lakhs being charged 8.75 VAT against 7% earlier and cars priced above Rs. 10 lakhs will end up paying 12.5% VAT against the 10% earlier. Every month 10000-15000 Diesel cars are registered in Delhi.