Bengaluru: The Fifth State Finance Commission of Karnataka has recommended, among other things, a congestion tax for India’s IT capital as a means not just to discourage private vehicle usage but also to shore up revenues to fund other development projects in Bengaluru.
The commission, in its latest report for 2026-2030, tabled in the assembly Tuesday, recommended a “London-model” congestion tax to be imposed on vehicles plying on busy roads across the state capital.
“There have been discussions on congestion tax for some time now but no decision has been taken yet on whether we can implement it. The chief minister and finance department will take a call on whether to accept the recommendations of the commission,” a cabinet minister told ThePrint.
The Siddaramaiah-led state government has been discussing the congestion tax issue at least since September last year and is likely to accept the recommendation, according to people aware of the developments.
Another person from the Chief Minister’s Office said the report has only been tabled and a decision will be taken on accepting the commission’s report as a whole or in parts.
Though the state finance commission’s report has been tabled, its recommendations are not binding on the government, people aware of the developments said.
The commission said that with congestion charges, it not only looks to raise money but also change public behaviour as well as reduce congestion and pollution.
“It generates predictable, recurring revenue, and the revenue from this charge is largely reinvested in public transport and road improvements,” the commission notes in its report.
It added that the proposal had “high potential” in Bengaluru and could be implemented on busy roads like the Outer Ring Road using FastTag technology.
“It is recommended to levy congestion charges on the ORR and other feasible areas where adequate public transport is available to the selective type of vehicles that cause congestion,” the report adds.
With over 12 million vehicles in Bengaluru and nearly 1,500 new ones getting registered every day, India’s IT capital has become synonymous with traffic congestion, making life that much harder for its nearly 14 million residents.
Globally, several country capitals charge congestion tax as a measure to discourage citizens from using private transport.
For instance, Singapore introduced the tax in 1975 as a measure to mitigate the growing vehicle population, and the measure saw quick results with traffic reportedly coming down nearly 20 percent in a matter of months.
Bengaluru, however, is a different case since congestion here is not caused by vehicles alone but fuelled by the lack of good roads, poor traffic management, crumbling infrastructure, delayed mass transit projects, inadequate infusion of funds into public transport, lack of planning and other factors, say experts.
Congestion charges in Bengaluru were first mooted last September when industry captains like Kiran Mazumdar Shaw, urban planner and Yulu co-founder R.K. Mishra, and urban designer and architect Naresh Narasimhan, among others, discussed the idea with the Siddaramaiah-led government.
At the time, the government considered a congestion tax on single-occupancy cars in high density corridors.
Since the proposal was made public, there have been sharp reactions from the larger public in Bengaluru.
Mahesh B.R., a city-based tech enthusiast, termed it “unscientific & defeats the very purpose of Ring Road”. He added that such taxes should be levied on footpath and road encroachments.
(Edited by Nida Fatima Siddiqui)
Also Read: Bengaluru to Palghar, potholes are a death trap. AI startups racing to solve it
So they want to implement “London style tax” without London like public transport facility ? This is absolute madness.
I am in support of less private vehicles but they need to develop public transport. As someone else mentioned look at the footpaths. Either they are encroached by beggars and illegal vendors or in some places they look like they were bombed. Now I went to Bangalore a year back but I am pretty sure nothing has changed.
You are just taxing people but are they getting anything back ? This stupid Congress government is spending 40,000 crores on a tunnel road ? What kind of a signal are you giving ? That money can be used to built 2 different metro lines or revamp the bus infrastructure. Utter rubbish.
London style congestion tax for third-rate street infrastructure of Bengaluru is cruel.