Govt plans new vehicle taxes to clear roads

New Delhi: The government plans to levy a one-time additional "urban transport tax" on private vehicles to discourage their use in cities and towns that have been contending with the growing rise of four-wheelers over the past few years. In addition, in the next five years, the Union urban development ministry is looking to introduce "congestion pricing" — popularly known as congestion tax — in cities and towns.      These proposals have been incorporated in the targets set for the ministry during 12th five-year Plan. On Saturday, a meeting will be held to discuss the plan for all ministries.      The central proposal says the urban transport tax can be collected throughinsurance companies for existing vehicles. For new vehicles, the tax can be collected at the time of registration.      Urban areas have the maximum concentration of private vehicles. Transport experts say mega cities have at least 10% share of total vehicles, of which 90% are privately owned. The government expects the measures to force people to shift to public transport, and it would have a direct impact on the country's crude oil import and reduction in vehicular pollution in urban centres.      Earlier this year, the urban development ministry had proposed issuing an elaborate advisory to states on how to levy congestion tax in cities. The tax is applied only in restricted areas such as central business districts like Connaught Place in New Delhi where traffic flow is high.      Sources said the ministry is also considering provisions of incentives and penalties for states for stricter enforcement. The pricing of congestion tax would be decided by state governments.      Considering that such initiatives would work only when there is adequate and efficient public transport system, the government proposes to set up a National Urban Rail Transit Authority, which would plan and design Mass Rapid Transit Systems for all urban centres, over the next five years.  Times View: Need to develop public infra I n a world threatened by emissions leading to global warming, the general principle of encouraging the use of public transport and correspondingly discouraging private vehicles makes sense. You could also argue, as many do, that the best way of doing this is through fiscal incentives and disincentives rather than outright bans. However, if this principle is to work on the ground, it must be accompanied by the development of a public transport infrastructure that is genuinely good and adequate. Unfortunately, that is far from being the case in India. To talk of a tax on private vehicles without creating such public transport facilities amounts to putting the cart before the horse.