With the rise in traffic congestion throughout the globe, Governments have proposed to raise taxes on vehicles to reduce the traffic on road.What is your view on this?
It is believed that taxes collected from vehicles can be utilized to improve the public transport and encourage people to use public transport. This has both pros and cons.Increasing the taxes on private vehicles will discourage buyers, ultimately resulting in low buying of private cars and thus reducing the number of road users. This will definitely bring down the traffic congestion and improve mobility on roads. It will also reduce environmental pollution which is a very important issue for all earthlings.
The collected tax will then add to the funds to build and develop the public transport. If the public transport is well maintained and efficient people will be more inclined towards using it. For example, people will prefer the metro than private cars if such a facility is available on the same route. This will not only save them fuel and cost but also their precious time.
However, levying higher taxes on private vehicle owners may have some adverse effects. This will directly affect the number of buyers and in turn, affect the automobile industry. The lesser demand of vehicles will mean less production and reduction employment. It is a well-known fact that automobile industry is a key sector for employment. There are still many places all over the world which do not have much-developed roads and transportation network, where using private cars is only the option. Even if public transportation is available, it may not be frequent and not provide good riding quality to the users. So, if taxes are raised such people who already face transportation problems will meet a worse fate.
Nevertheless, imposing taxes on the private vehicle has potential to improve the transportation of countries as a whole in the long run. In the short term, this will definitely reduce traffic congestion and pollution. Moreover, a nation can be considered fully developed when all its citizens prefer to use public transport rather than using their private vehicles.
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