Odisha To Levy Congestion Charges On Commercial Vehicles!

Bhubaneswar: Days after initiating steps to hire electric vehicles for government offices, the authorities in Odisha are planning to introduce congestion charges on fuel-driven industrial autos, besides air pollution cess and additional highway tax on petrol and diesel autos which might be older than 15 years.

This is being seen as an attempt to decrease air pollution while encouraging motorists to switch over to electrical autos (EVs). The government is already offering subsidies, waivers and incentives to purchase EVs under the Odisha Electric Vehicle Policy, 2021.

“We will soon prepare a detailed proposal on the exact quantum and structure of the congestion fee and send it to the government for approval,” a senior transport department official was quoted as saying by TOI.

Commercial cabs and auto-rickshaws being run on petrol and diesel in the twin cities of Bhubaneswar and Cuttack would be brought under congestion tax in the first phase. Of the nearly 65 lakh vehicles, at least 25 lakh ply in Bhubaneswar and Cuttack alone and among them, 15% are used for commercial purposes.

Subsequently, all other categories of commercial and private petrol and diesel vehicles will be brought under the tax structure.  The fees collected from the proposed congestion tax on commercial vehicles would be allocated to the EV fund from which subsidies would be provided to those purchasing EVs, the official added.

Notably, New York City is planning to introduce a traffic congestion charge of up to $23 a day from next year to reduce road traffic. In London, the congestion charges are 15 pounds daily while a driver needs to pay $1.30 in Singapore.

According to World Economic Forum, cities that have implemented congestion charges have witnessed a decline in emissions and pollution caused by road traffic.