Congestion Tax in India
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As an endeavor to take care of the rising problem of pollution and over crowded Delhi streets, the Government of India has come up with a solution. To discourage vehicle owners from entering the areas of the city where the traffic problem is very rampant, the government has proposed to impose a new form of tax called the congestion tax on the roads of the city. The Congestion Tax, if implemented, will make sure that people of the city either avoid these areas or are prepared to be charged for using these roads which in turn will reduce chaos and provide the government with additional revenue.
The Municipal Corporation of Delhi (MCD) is entrusted with responsibility by the government of India to implement the tax. MCD has announced that all the three zones of the city will have to bear with the implementation of this tax, the three zones being the city, Karol Bagh and Sadar Paharganj. However, the residents of that zone would not be required to pay the tax. For example, if a resident of Karol Bagh is traveling within the zone, he will not be required to pay the tax but if he passes through any of the other two zones, the congestion tax will be levied upon him. The amount to be paid may be around 50 rupees for two wheelers and 150 rupees for cars and other four wheelers.
There have been different reactions on the news ever since the announcement was first made by the MCD. Some people feel that it is high time that Delhi needed one such step to help the citizens against the long wasted hours waiting for the traffic to move on. The Congestion Tax, they feel, will also encourage people to travel more by public transport which will add to the income of the government besides reducing pollution and traffic. Others are of an opinion that the congestion tax will be an added encumbrance to the people of Delhi who are already facing a lot on account of inflation. Another objection raised against the implementation of the tax is that if a person needs to travel through the same road every now and then, the amount of congestion tax to be paid will be too much.
Municipal Corporation of Delhi has not yet decided upon the ways to impose and collect the tax and given the criticism that the congestion tax has already invited, there is a tough task ahead of the organization it seems. Whether it will be implemen's capacity to introduce taxes which were never heard before. Congestion tax, however, is not a new phenomenon worldwide and has been in place in cities like Rome, London, Beijing and Singapore since a long time.
Last Updated on 12/15/2011
Who has Implemented Congestion Tax?
The Municipal Corporation of Delhi (MCD) is entrusted with responsibility by the government of India to implement the tax. MCD has announced that all the three zones of the city will have to bear with the implementation of this tax, the three zones being the city, Karol Bagh and Sadar Paharganj. However, the residents of that zone would not be required to pay the tax. For example, if a resident of Karol Bagh is traveling within the zone, he will not be required to pay the tax but if he passes through any of the other two zones, the congestion tax will be levied upon him. The amount to be paid may be around 50 rupees for two wheelers and 150 rupees for cars and other four wheelers.
There have been different reactions on the news ever since the announcement was first made by the MCD. Some people feel that it is high time that Delhi needed one such step to help the citizens against the long wasted hours waiting for the traffic to move on. The Congestion Tax, they feel, will also encourage people to travel more by public transport which will add to the income of the government besides reducing pollution and traffic. Others are of an opinion that the congestion tax will be an added encumbrance to the people of Delhi who are already facing a lot on account of inflation. Another objection raised against the implementation of the tax is that if a person needs to travel through the same road every now and then, the amount of congestion tax to be paid will be too much.
Municipal Corporation of Delhi has not yet decided upon the ways to impose and collect the tax and given the criticism that the congestion tax has already invited, there is a tough task ahead of the organization it seems. Whether it will be implemen's capacity to introduce taxes which were never heard before. Congestion tax, however, is not a new phenomenon worldwide and has been in place in cities like Rome, London, Beijing and Singapore since a long time.
Last Updated on 12/15/2011
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