Analytical Interpretation of Road User Taxes ...

Analytical Interpretation of Road User Taxes in Haryana

Author Name : Rinku, Ajay Kaushik

ABSTRACT: Some incentives could be built into the tax system to encourage States to use road taxes as an tool to achieve certain plan objectives. First, these taxes could be introduced in such a way that they cheer the use of multi-axle vehicles. This is principal in the context of over-loading of two-axle vehicles and their resultant damage to the roads. Transportation of heavy loads without causing unnecessary damage to pavement can be best achieved by using multiaxle vehicles. Second, the tax indification should be used to bring about noise-reduction and high value vehicles. That is, the tax rate could be inversely linked to noise pollution and positively to the value of vehicles. Third, for abatement of pollution, it is suggested that a presumptive tax be levied for control the use of private vehicles and a well designed purchase and circulation tax levied to motivate cleaner car technologies and fuels to reduce vehicle emissions. Fuel duties can be used to decrease traffic as well as pursue other environmental policy goals associated to transport.