Soon, you may have to pay congestion tax for entering Delhi

In an effort to reduce traffic congestion and improve air quality, the Delhi government is considering implementing a congestion tax on vehicles entering the city during peak hours. The tax, aimed at decongesting major entry points to the capital, would apply between 8 a.m. and 10 a.m., and 5:30 p.m. and 7:30 p.m. at 13 major border entry points. The revenue collected would be used to improve public transportation and road infrastructure, a TOI report stated.

Tax Collection through FASTag

The congestion tax will be collected automatically through FASTag, the system already used for toll collection, to avoid creating further traffic jams. "It would not be manual but through RFID readers and NPR (number plate recognition) cameras so that one does not have to wait. Otherwise, the whole purpose would be defeated if this causes a jam," a government official explained. Two-wheelers and non-polluting vehicles, including electric vehicles (EVs), will be exempt from the tax.

While the proposal is in its advanced stages, legal obstacles remain. A senior government official acknowledged that congestion pricing is not defined under the current Motor Vehicles Act. "So, either changes in the Act or new statutory provisions are needed," the official said. This legal challenge has delayed similar efforts in the past.

Previous Attempts at Congestion Tax

This is not the first time the Delhi government has explored the idea of a congestion tax. In 2018, the government proposed levying such a tax on vehicles entering 21 heavily congested road stretches, including areas like Aurobindo Chowk and the ITO intersection. However, the plan was shelved. A similar proposal in 2009 by then-chief minister Sheila Dikshit also did not move forward, despite concerns over the growing number of vehicles entering the city from neighboring regions.

Addressing Congestion and Pollution

Delhi’s traffic congestion has worsened due to the influx of vehicles from neighboring states, particularly commercial goods vehicles. "Additional time spent in traffic also has consequences for air quality due to increased idling emissions," said another government official. The tax is part of a broader strategy to encourage the use of public transport and reduce vehicular emissions.

Focus on Public Transport and Infrastructure

The revenue generated from the congestion tax will be directed toward improving public transportation and enhancing infrastructure, particularly for vulnerable road users such as cyclists and pedestrians. The goal is to provide better, more sustainable transport options while reducing the city's air pollution levels.