The transport sector contributes greatly to the Tax Revenues of the State, primarily through the GST and also, the Road Tax collected (Life or Quarterly or Annually etc.) and also, through the other various fees charged for licenses / permits etc. The temptation to increase revenue collection by increasing the burden of life tax is actually an attempt to kill the ‘goose that lays the golden egg’. Of course, the reasons given are always different in order to seem more politically correct. e.g.:

1. We are only trying to control the traffic congestion or,
2. We are only aiming to reduce the pollution and so on.

Proper consideration will prove these are fallacious arguments, which if really implemented would severely reduce revenues with not much improvement in the parameters desired. If, however, it is really the intention to improve matters, the following measures may be considered as being more practical and effective, and overall better revenue generators;

3. To reduce the congestion on the roads

1. Expedite and expand the Public Transport/ Metro I MMTS project.
2. Improve the roads and pedestrian paths and remove all encroachments thereon. The minimum width of the roadway should be at least 20 mtrs wide with 2.5 mtrs. wide footpaths on both sides, with proper storm water drains and street lights.
3. Ban slow moving vehicles / animal carts / hand carts on roads in the central areas of the city.
4. Install proper switch operated “Stop/ Go” or “Walk/ Don’t Walk” lights at Zebra crossings, duly synchronized with nearby traffic signal lights. Insist on all pedestrians only crossing the road at such points and strictly penalize ‘Jay Walking’. Provide subways or foot-over bridges as may be required.
5. Teach Traffic / Road courtesies to all users, from children to applicant drivers and ensure compliance even from pedestrians.
6. Delete all unnecessary and un-implementable traffic rules and lay down practical speed limits (not just state 15 kmph or 25 kmph, when 40 to 60 kmph, is more practical and realistic, on expressways 120 kmph is a more realistic limit, unless the vehicle is not rated for that speed. Then strictly enforce all traffic rules and collect fines for even minor infractions.
7. Implement the fines under the new Act. If anyone claims the fines are too heavy, the answer is – then don’t break the Rules. If somefew are unable to pay the fine it may be compounded with serious community service.

Introduce differential road tax based on congestion / pollution. The road tax for a city dweller should be higher than that for a town dweller which should in turn be higher than that for a rural dweller. The road tax for commercial vehicles should be far higher, or perhaps, if they are only passing through, be the same as for the private vehicles of the area the commercial vehicle is to be used in, but for a much shorter period keeping in view the nature and intensity of its operation.

This can be done by mapping the registration area with the PIN code, implementing the tax rates as per the PIN code of the vehicle owner’s address. The present system of allocating registration as per the District / Mandal / Tehsil and Village is not satisfactory as a District may stretch across many postal PIN code areas and cause confusion for address verification. The new digital location code now being introduced will be a better system.

Vehicles coming into specified high tax rate PIN code areas from lesser tax rate PIN code areas should be asked to pay a toll tax valid for a day / a week / or a month as elected by the vehicle owner, and like the pollution certificate this token should be displayed on the windshield or body of the vehicle, and a penalty imposed for not getting the token renewed. Commercial vehicles within the city should be charged at double the rates except at night. Of course, if they are bypassing the cities or towns using the Ring/ By-Pass roads then they need not be charged any extra tax.

It should be noted that a tax based on mileage run is more appropriate than the payment of a lifetime / one-time tax, which encourages more usage of the vehicle as the cost per kilometre run actually reduces the more the vehicle is run. However, till a practical way to impose such a tax is arrived at, the concept of tax for a period of 3 years for a private vehicle renewable for an additional, say 2 years each time thereafter upto 15 years, and yearly thereafter, and an initial period of two years for a commercial vehicle renewable annually thereafter for a total period of 10 years or upto three lakh kms (or such mileage limit as may be set for each type of vehicle) whichever is earlier, may be considered. Also, a ‘congestion cess’ can be added to the parking cost in such areas, which can be enhanced in congested areas and at the times when congestion is high.

An additional parking tax may also, be collected from any vehicle owner resident in an area, who does not possess a certificate from the concerned Municipal Authority confirming that an adequate private parking space for the vehicle is available at the required place. Road-side parking adds to congestion and hence, road-side parking tax /fine should be strictly imposed, enforced and collected. Such a tax could be greater in areas with greater congestion

It has been noted that increasing the fuel costs as a measure to restrict usage or increase vehicle taxes / costs to restrict vehicle purchases, can only be a temporary solution. Such solutions have not been found to work very well wherever tried and hence, should not be resorted to.

It is also, necessary that Life or Road use Tax being collected be used primarily for improving the roads and providing traffic facilities as given above.

4. To reduce the cause of road accidents and reduce pollution:

1. Implement the ban on all over 12/15 years old commercial vehicles, including taxi cabs and auto rickshaws, or even earlier for such vehicles with mileage more than laid down for each category. In addition to pollution, these vehicles risk passenger safety due to greater wear and tear and metal fatigue leading to component failure and are therefore often found to be the cause for frequent and dangerous road accidents. The more stringent option of requiring all commercial vehicles to be rigorously and comprehensively tested and certified as ‘Fit’, annually at the workshop of any Authorized Dealer of that vehicle should also, be considered. The fee for such certification could be equitably shared between the Dealer and the Transport Authority.
2. Insist that the Seller of a used vehicle, both private and commercial, be required to get a similar Fitness certificate from the Authorized Dealer of that Vehicle to ensure that an unfit vehicle not be passed on to the Buyer, not earlier than within seven days of the date of taking possession of the vehicle or the date of sale, whichever is earlier.
3. Encourage replacement of even private older vehicles, with more environmentally acceptable newer vehicles, by offering suitable incentives, especially for two wheelers with two- stroke engines.
4. Proper enforcement of traffic rules will also, lead to smoother flow of traffic and reduced emissions, and to less use of horns thus reducing noise pollution too.

5. To increase Revenues:

1. Call on 12/15 years and older private vehicles to meet pollution norms or pay a pollution tax and also, to pay an annual road tax after satisfactory fitness test, as life tax is for a maximum of 12/ 15 years.
2. Impose a one percent Transfer Fee, on whatever the declared price be, for change of owner for all used vehicles. This fee should be low to encourage the right declaration of price. This also allows for proper transfer of ownership and proper monitoring.
3. Increase fees for Registration to more realistic levels say, Rs 1000/- for two wheelers and Rs 5000/- for Four Wheelers. Stop harassing the Public by trying to increase revenues by excessive add on charges for small corrections etc. Such correction charges could be standardized at say Rs.500/- or Rs.1000/-, for all vehicles and the procedures made more convenient. Charges for correction of errors in Engine or Chassis numbers could be double the above rates and also, require RTA verification.
4. Introduce strict pollution standards for 2-stroke engine vehicles with higher penalties or registration fees, with exception for such engines as meet the required pollution norms. Enforce Pollution checks and penalize defaulters.

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