Inspired by cities like London, New York, and Singapore, the Delhi government is planning to introduce a congestion tax on vehicles entering the city during peak hours – 8 am to 10 am and 5:30 pm to 7:30 pm — through 13 major entry points along its borders. The move aims to address traffic congestion and reduce pollution.
The tax collection is expected to be automated through FASTag, avoiding manual collection to prevent traffic bottlenecks. Two-wheelers and non-polluting vehicles, including electric vehicles (EVs), are likely to be exempt from this tax.
A report by The Times of India quoted a senior official as saying that the government has been working on a “congestion pricing” initiative, but the proposal encountered a challenge when the law department noted that the Motor Vehicles Act does not include provisions for such charges. As a result, either amendments to the Act or new legal provisions will be required.
The revenue generated from the tax, along with any penalties, will be used to enhance public transportation and improve road infrastructure, particularly for vulnerable users such as cyclists and pedestrians, another official said, as mentioned by the report.
The official also highlighted that the influx of vehicles from nearby rapidly expanding towns and the flow of commercial goods vehicles have contributed to the increased vehicular traffic entering Delhi. He added that prolonged time spent in traffic negatively impacts air quality due to emissions from idling vehicles.
Currently, several border areas, including DND and New Ashok Nagar, are major choke points.
This is not the first time such a measure has been considered in Delhi. Similar proposals were discussed in the past, but could not be implemented. In 2018, a plan was introduced to impose a congestion tax on vehicles along 21 high-traffic stretches in the city, including sections like the Aurobindo Chowk-Andheria More corridor, the Nehru Place to Modi Mills flyover, areas around Hauz Khas Metro station, and the ITO intersection.
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In 2009, then Chief Minister Sheila Dikshit suggested an additional charge on private vehicles entering the capital to promote public transport. However, the proposal was eventually shelved.
The government plans to use FASTag technology for congestion tax collection, using RFID readers and number plate recognition (NPR) cameras to ensure smooth traffic flow without causing delays, an official said, as stated in the report.