Several cities around the world collect congestion tax from vehicles on roads during peak hours. Taking inspiration from such cities like Singapore, London and New York, the Delhi government is now planning to introduce a congestion tax on some of its roads, The Times of India reported. The initiative will be in play during peak hours – from 8:00 AM to 10:00 AM and 5:30 PM to 7:30 PM – via 13 key entry points along Delhi’s borders. It aims to alleviate traffic congestion and curb pollution levels.
The government is planning to collect this tax via FASTag and not manually. As per the report, two-wheelers, EVs and non-polluting vehicles will be exempted from this tax.
A senior official stated that the government has been developing a “congestion pricing” initiative. However, the law department highlighted that the Motor Vehicles Act currently lacks provisions for such charges. Consequently, amendments to the Act or new legal provisions will be necessary to implement the plan.
According to the report, the revenue generated from the tax, along with any penalties, will be directed towards improving public transportation and enhancing road infrastructure, with a particular focus on vulnerable users such as cyclists and pedestrians.
Another official emphasised that a rise in the number of vehicles entering Delhi has been observed driven by the rapid expansion of nearby towns and the influx of commercial goods vehicles. This has significantly worsened the congestion. He noted that extended periods of idling in traffic contribute to deteriorating air quality due to vehicle emissions. At present, several border areas, such as DND and New Ashok Nagar, are key choke points.
