The Hindu Business Line : Panel moots allocation of fixed share of taxes for road maintenance

Road to maintenance
The States may set up dedicated fund for maintenance of roads.
Calls for enhancing penal provisions for violation of rules.
Pricing mechanism is to take into account the negative external effects such as congestion, air and noise pollution and accidents.

Mamuni Das

New Delhi, Sept 14

A fixed share of road transport-related taxes collected by the Central and State Governments should accrue towards maintenance of roads, a committee, set up to formulate the National Road Transport Policy, has suggested.

It has also suggested several reforms in the road transport sector including road transport regulators in the States and promoting use of bio-fuels.

The committee, headed by Mr D. Thangaraj, Principal Secretary (Transport Department), to the Government of Karnataka, has recently submitted this report to the Ministry of Shipping, Road Transport and Highways at the Centre.

Ensure funds availability

“There is a need to ensure adequate availability of funds for proper maintenance not only for the nationally-financed road infrastructure such as highways but also for locally owned assets.

A fixed share of the Central Road Fund, say 10 per cent, should be earmarked for maintenance of road network,” the committee has recommended.

Dedicated funds

The States may also set up similar dedicated fund for maintenance of roads.

The States may consider allocating ten per cent of the Motor Vehicle Tax and the value added tax collected on sale of vehicles to this dedicated fund, it has said.

On the public road transport front, the Committee has recommended setting up independent road transport regulators at the State levels.

The regulators would ensure level service quality, fair pricing of service and reasonable return to service providers, apart from ensuring level playing field to all public road transport service providers in terms of access to infrastructure.

Penal provisions

While suggesting liberalisation in terms of granting permits to carriages, the committee has also called for enhancing penal provisions for violation of rules.

On the pricing mechanism, the recommendation is to take into account the negative external effects such as congestion, air and noise pollution and accidents.

The fiscal measures should be devised in a manner to promote public transport compared to the personalised mode of transport.

Bio-fuel promotion

Moreover, the committee has called for promoting use of bio-fuels and facilitating non-motorised transport (NMTs) such as bicycles by making segregated provision for NMTs on all roads.

“In order to discourage pollution and create a dedicated resource pool, imposition of green cess on older vehicles should be considered by the States.

The funds generated should be used for enforcing better compliance to environmental norms,” it stated.