Ministry to ask states to levy congestion tax

The Ministry for Urban Development is planning to write an advisory to states telling them that the time has come for them to consider levying congestion tax on vehicle owners.

The note is likely to be issued soon, a UD official said.

"We are going to issue an advisory asking states to levy congestion tax, but the criteria for collecting such tax would be that a state should first ensure good quality public transport. If you levy congestion tax to discourage use of private vehicles, you need to ensure that you have a strong public transport system in place,'' a senior UD official said.

The proposal for introducing congestion tax has been incorporated in the targets set for the ministry in the 12th Five Year Plan.

"Public transport crisis is getting accentuated because of limited public finance to support it. Financing public transport remains a problem largely because the cost recoveries are a challenge. There is need for schemes that automatically earmarks tax proceeds for public transport. Otherwise, sustained predictable financing of public transport becomes difficult,'' the official said.

Urban transport experts said the mega cities have at least 10 per cent share of total vehicles, of which 90 per cent are private vehicles.

Singapore introduced congestion tax under the area licensing system, where a six sq-km area in the state's central business district — called the restricted zone — was identified. Vehicle users have to buy a special paper licence, which costs 3 Singaporean dollars daily.

ALSO READ

Inspector, live-in partner found dead in Gurgaon

Won't overrule DU's 4-year plan: Shashi Tharoor at Google+ hangout

To beat cancer, Stanford professor reaches out to Keralites in Delhi and elsewhere

Woman alleges gang-rape by husband, in-laws