Will a congestion tax ease Bengaluru's traffic problem? All you need to know about peak-hour fee

Urban expert R K Misra has suggested that the government introduce a congestion charge on the Outer Ring Road to discourage single-occupant cars

Urban experts have yet again suggested introducing a congestion tax in Bengaluru as a step towards easing the ever-increasing traffic problems in the city.

This was among the measures discussed at a recent high-level meeting to improve road infrastructure and unclog city roads.

At the meeting, urban expert R K Misra suggested introducing congestion charges on the Outer Ring Road (ORR) to discourage single-occupant cars.

“If a car with only one occupant enters the ORR, a congestion fee may be deducted automatically via FASTag. Cars with two or more occupants won’t be charged,” Misra said.

Later, he said it was not enough to add new roads, but the government must also focus on demand management.

"Bengaluru is adding one lakh vehicles every month. About 82% of them are two-wheelers. In places such as London and Singapore, congestion charges are in place. We should emulate this on the ORR so that the tech parks promote carpooling among their employees,” he said.

So what is a congestion tax? A congestion tax is a charge levied on vehicles that enter specific areas of a city during peak traffic hours. It is seen as an effective way to reduce traffic congestion and air pollution, along with encouraging people to choose public transport over personal vehicles. A congestion charge is in place in Singapore and in cities such as London, Stockholm, Milan and New York City.

A senior official who was part of the meeting in Bengaluru, which was attended by Chief Secretary Shalini Rajneesh, senior IAS and IPS officers, Biocon chairperson and managing director Kiran Mazumdar-Shaw, said the proposal was discussed, but is only at the idea stage. "It is a proposal that the government will consider seriously at the moment,” he said.

Not the first time

This is not the first time the idea of imposing a congestion tax in Bengaluru has been mooted. In 2023, a report prepared by the Planning, Programme Monitoring and Statistics Department and the Federation of Indian Chambers of Commerce had recommended a congestion tax on private vehicles using nine high-density roads to enter Bengaluru during peak hours. The roads included Outer Ring Road, Sarjapur Road, Hosur Road, Old Madras Road, Ballari Road, and Tumakuru Road.

Experts had then warned that enforcing such a tax without boosting public transport would lead to a backlash.

The situation has not changed much over the last two years. City’s public transport is far from being robust; mass transit systems such as the metro and suburban rail network projects are hit by delays, and the city’s pavements offer limited walkability.

Recently, commuters and civic groups raised concerns over traffic jams on the ORR and the poor state of the key corridor that houses information technology parks. This followed logistics tech company BlackBuck's announcement that it will relocate its office from Bellandur on the ORR, citing severe traffic congestion and poor road conditions.

The announcement triggered criticism of the Karnataka government’s handling of civic issues, particularly in Bengaluru.