The ministry of urban development (MoUD) has sought an increase in,and rationalisation of,excise duty levied on petrol and diesel vehicles at the national level. It has also urged for a hike in registration charges of these vehicles at the city level. This is one of the fiscal measures proposed towards the creation of a dedicated urban transport fund (UTF). According to ministry officials,UTF is an important reform proposed by the MoUD to make transport investments sustainable by subsidising public transport and non-motorised transport. These parameters for the National Mission on Sustainable Habitat were discussed at the first national consultation workshop on Wednesday. The ministry will forward the proposal to the Planning Commission once all the parameters are finalised. They will then be published before adoption by city masterplans,incorporation in zonal/local area plans etc. According to a report,prepared by a sub-committee on urban transport,Indian cities need to explore the strategy of imposing cess on fuel to generate revenue for urban transport funds. Delhi is the only instance where cess on fuel is being charged to generate dedicated fund for for pollution control. Sudhir Krishna,secretary,MoUD,said,People are more acceptable of the taxation if the use is more defined.
