Congestion Tax

Congestion Tax

News: Recently, the government of Karnataka, India, is considering implementing a congestion tax on drivers in Bengaluru entering via nine routes during peak hours to reduce worsening traffic on the roads.

What is Congestion Tax?
• Congestion tax is a fee imposed on private vehicles that enter specific areas, usually within a city, during peak traffic hours.

The main objectives of this tax are:
• To relieve traffic congestion in a particular area.
• To discourage the use of private vehicles during peak times.
• To promote the use of public transportation as a means to alleviate traffic woes.
• To reduce air pollution and mitigate greenhouse gas emissions

How does it work? Has it helped?
• The tax is typically collected automatically as vehicles pass through toll points equipped with cameras. The cameras capture images, and the congestion tax is deducted from the vehicle owner’s bank account.
• This approach has proven effective in addressing traffic congestion in numerous global metropolises such as London, Stockholm, and Singapore.