Have you ever wondered about the concept of a congestion tax? It's a fee or tax that is imposed on private vehicles that venture into specific zones, typically within a city's center, during peak traffic hours. The main objective of this tax is to alleviate traffic congestion and promote smoother flow of vehicles.
This topic can be very beneficial for the IAS Exam aspirants.
The congestion tax is not just a random levy. It serves two major purposes:
Let's take a look at some cities where the congestion tax has been implemented successfully:
Globally, there are four major types of congestion tax systems implemented. They are:
The information provided above can prove to be very valuable for those preparing for the UPSC 2021.
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