Delhi’s Congestion Tax Policy: Who Will Be Charged and Who Avoids Fees?

Delhi Government is planning on imposing a congestion tax for the vehicles entering Delhi during peak hours
Congestion Tax Policy - Delhi’s Congestion Tax Policy - Tax for Traffic Congestion - Taxscan

The Delhi Government is actively considering the introduction of a congestion charge on vehicles entering the national capital during peak hours. This initiative aimed to reduce vehicular pollution and severe traffic congestion during busy office hours.

The proposed tax will be applied to vehicles entering Delhi from border areas during peak hours, between 8:00 a.m. and 10:00 a.m., and 5:30 p.m. to 7:30 p.m. The initiative focuses on 13 key border points known for heavy vehicular traffic. These points have been strategically selected to maximize the impact of the policy on traffic reduction.

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To ensure a smooth and efficient process, the Delhi government plans to implement this tax using FASTag and automatic number plate recognition ( ANPR ) technology. This automation will help streamline the tax collection process, minimizing disruptions and delays at entry points.

Notably, two-wheelers and electric vehicles will be exempt from this congestion tax, as part of the government’s effort to promote cleaner transportation alternatives.

The tax draws inspiration from successful models in cities like London and Singapore, where congestion charges have effectively reduced traffic volume and improved air quality. The main goal is to discourage the use of personal vehicles during these hours and encourage the use of public transportation or eco-friendly alternatives like vehicles with BS6-compliant engines which adhere to stricter pollution standards.

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Vehicular emissions are a huge contributor to the pollution crisis in Delhi. If implemented, the congestion tax is hoped to reduce the number of cars on the road, thereby lowering both traffic jams and harmful emissions.

This initiative has already been discussed in the past but could not be implemented. In 2018, the government introduced a plan to impose a congestion tax on vehicles along 21 high-traffic areas in the city. These included major corridors like the Aurobindo Chowk-Andheria More route, the Nehru Place to Modi Mills flyover, areas around Hauz Khas Metro station, and the ITO intersection.

In 2009, then Chief Minister Sheila Dikshit proposed an extra charge on private vehicles entering the capital as a way to promote public transport. However, that proposal was eventually not implemented due to various challenges.

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Regarding this initiative, the public was not happy about it being implemented. Many in the middle class feel the burden is once again being placed on them, as taxpayers are being asked to bear the brunt of solving the city’s pollution and traffic crises. Some raise the question of whether such a tax would be effective, given that previous attempts to introduce congestion charges in the city were unsuccessful.

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