Speaker: Dr. C Saratchand, Assistant Professor, Satwayati College, DU

Cities such as Delhi are plagued with the problems of air pollution and traffic congestion. A key (but not the sole) contributor to air pollution are private vehicles especially cars which are powered by petrol, diesel etc. It is proposed that a tax on the use of private vehicles be levied per month (or year). This would result in some private vehicle owners shifting to public transport which would reduce traffic congestion on roads. However unless public transport and its direct and indirect input requirements are based on non-polluting energy sources, the shift to public transport will not reduce pollution. Further unless the magnitude of public transport is expanded the extent of queuing therein will increase. Therefore the proceeds of the tax on the use of private vehicles may be used to expand the metro rail system, a fleet of public electric buses etc. Besides a part of the proceeds of the tax may be used to expand power production from non-polluting sources such as solar energy. It is likely that once the rate of tax on the use of private vehicle use has exceeded a certain level, further shift of private vehicle users to public transport may not transpire due to the existing system of preferences of the rich towards the experience of private transport. Further tax revenue may be raised by increasing the tax rate on the use of private vehicles and by resetting property tax rates in such a manner that proximity to public transport spots is a determinant of the former. The relevance of this proposal to other urban locations is briefly considered.