On the pattern followed in other states, including Punjab, the RLA has proposed that four-wheelers be charged one per cent of their value, while two-wheelers two per cent of their value.

At present, the administration is charging a flat fee of Rs 2,100 for new four wheelers (a five-seater), Rs 1,800 for a four-seater and Rs 2,400 for a six seater regardless of the price of the vehicle. The registration fee for vehicles older than three years or more is lesser.

For two-wheelers, Rs 500 is being charged per vehicle.

“The hike was long overdue,” said RLA head Niharika Rai, adding that the registration charges had not been revised for over a decade.

“In almost all other states in the country, the owners pay the registration fee according to the value of the vehicle. If the proposal is implemented, the RLA will see a substantial increase in its revenue. The move also aims to act as a deterrent for addition of vehicles in the city,” she added.

The new fee structure will keep the RLA in good stead as nearly 70,000 new vehicles are registered in the city every year.