Congestion tax: Delhi govt plans to charge vehicles on specified roads to alleviate peak hour traffic

By Deepu Mohan  |  First Published Oct 12, 2024, 4:48 PM IST

Delhi is planning to introduce congestion tax to reduce peak-hour traffic. Drivers will be charged for using specified roads, with exemptions for two-wheelers and non-polluting vehicles. 


Delhi is taking a step to tackle traffic congestion by introducing a congestion tax, aimed at reducing traffic during peak hours. The government plans to charge drivers for using specified roads during peak hours, a strategy known as "congestion pricing". This isn't Delhi's first attempt at implementing a congestion tax; a similar proposal was discussed in 2018, focusing on 21 high-traffic stretches, including the ITO intersection and Mehrauli-Gurgaon Road.

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Thirteen key locations on Delhi's borders have been identified for the pilot phase, with plans to automate tax collection through FASTag, exempting two-wheelers and non-polluting vehicles. The revenue generated will be used to enhance public transportation and improve road infrastructure, particularly for vulnerable users like cyclists and pedestrians.

Other cities, like Bengaluru, are also considering congestion taxes to ease traffic on high-density roads during rush hours. The idea is to utilize the FASTag system to collect taxes from vehicles, that are non-exempt, entering the city during peak hours. This revenue can then be used to improve public transport, reduce pollution, and enhance the overall quality of life.

Interestingly, major cities across the globe like Singapore, London, and Stockholm have successfully implemented similar taxes to manage traffic and reduce congestion. By adopting this strategy, Delhi aims to alleviate traffic woes and create a more sustainable transportation system.

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