Govt plans to levy more tax on purchase of cars to decongest roads. Is it right?

GN Bureau | September 13, 2012



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. On the contrary, the result of a recent Punjab & Haryana high court order to make the Delhi-Gurgaon expressway toll free (for 15 days) to ease congestion has been encouraging. Now all vehicles zip past the toll and there is seldom any congestion seen these days.

Is the government’s plan of imposing tax to decongest roads a rational one or it reflects the failure of the government in managing traffic? We already pay heavy taxes on cars? Is taxing people further to make up for the government’s failure a right decision?

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