Now traffic congestion TAX in metros !!

CA. Rajeev Aggarwal (Chartered Accountant) (3419 Points)

25 December 2008  
 


  THE government is considering imposing a special fee on vehicles entering the central business districts of metropolitan cities as part of steps to cut carbon emissions and reduce traffic congestion. 

   The prime minister’s committee on climate change has suggested a congestion tax on vehicles entering busy commercial hubs such as Connaught Place in Delhi or Colaba in Mumbai and asked the urban development and environment ministries to come up with detailed policy recommendations within two weeks, a senior government official said on condition of anonymity. 

   Making ownership of personal vehicles costlier to promote use of public transport was also among the steps considered at a meeting of the panel last week, the official, who attended the meeting, said. The recommendations could include an increase in vehicle registration charges and higher fuel taxes as well as licence renewal fees. The money from the additional charges and levies may be used for a separate fund to finance public transport infrastructure in States. 

   Cities such as Singapore and London have strict vehicle ownership rules and levy a congestion charge in some of their busiest zones and use the money to finance investment in public transportation. The committee has also recommended setting up a regulatory body with powers to enforce restrictions on the use of personal vehicles and limit the availability of road space for them.