Pigovian Tax for Polluters ?

Pigovian  Tax  for  Polluters  ?

A few weeks back I suggested :

#     All 230 million vehicles operating in India , pay TRANS-Tax

#     More polluting vehicles pay more tax

#    Less polluting vehicles pay less tax

#    Diving conditions / locations / time etc to decide the exact ( but varying ) amount of tax payable

#    Tax to be paid for every hour of a vehicle’s life ( even when parked ) - and to be paid hourly

#    Tax to be automatically deducted from pre-paid sensor ( e-Wallet   ) pre-installed in each vehicle

     [ Concept details at :  Transport : an Integrated Logistic Plan ?   -  20  Nov  2018  ]

 

It seems , London Mayor Sadiq Khan is about to introduce a truncated version of my proposal , starting 08 April 2019 , under which :

“ Most vehicles that do not meet the European emissions standards are subject to a £12.50 ($16.30) charge for every day they drive within the ULEZ, in addition to the £11.50 congestion charge that operates on weekdays.

If a driver fails to pay within two weeks, they will face a penalty of £160. This will be halved if paid within two weeks.

Lorries will face a much higher daily charge of £100, with a penalty fare of £1,000.

The goal is to discourage people from driving heavily polluting vehicles in the city, in a bid to bring down levels of air pollution and associated health problems.

London's poor air quality shortens the lives of thousands of people every year. The Mayor, Sadiq Khan, has called it a public health emergency.

[  https://www.graphicnews.com/pages/en/38975/TRANSPORT-London-moves-to-curb-air-pollution  ] 

Now London had already introduced a “ Congestion Tax “ ( for vehicles entering specified area in Central London ), some 15 years ago . 

Proposed  Ultra Low Emission Zone ( ULEZ ) will be in addition to that

From the following report, it seems that the Congestion Tax has been very successful

It managed to :

#    Reduce traffic by 15 %

#    Congestion by 30 %

#    Traffic volumes in the charging zone are now nearly a quarter lower than a decade ago,

     allowing central London road space to be given over to cyclists and pedestrians.

#   Between 2002 and 2014, the number of private cars coming into the zone fell by 39 per cent.

#   Trips by taxi and private for hire vehicle as the main mode of the journey increased by 9.8 per cent between 

     2015 and 2016 alone – and 29.2 per cent since 2000

 

[  https://www.citymetric.com/transport/london-congestion-charge-has-been-huge-success-it-s-time-change-it-3751  ]

Now considering that, in Mumbai we have approx. 3.3 million ( - and far older and therefore, more polluting ) vehicles as  against 2.7 million vehicles in London , I would think , we have a greater need to implement a superior system of taxing vehicles than in London

Unfortunately, such a solution is unlikely to appear any time soon, given the constant fighting between the Municipal Corporation and the State Government

I do not expect Election Manifestos of either BJP or of Congress to read :

“  If voted to power, we promise to implement within one year :  Transport : an Integrated Logistic Plan ?  “ 

===============================================================

04  April  2019

Rsvp :  hcp@RecruitGuru.com