Congestion Tax for Bengaluru? Panel Suggests Charging Vehicles on Busy Roads

Indian cities are increasingly grappling with severe traffic congestion, with longer commute times and packed roads becoming part of daily life. As the problem intensifies, policymakers are exploring congestion charges and stricter parking regulations as possible solutions. The Economic Survey 2025-26 highlights congestion pricing as a policy tool that Indian urban centres could adopt, drawing lessons from global cities such as London and Singapore.

These cities use road pricing systems that charge vehicles for entering busy zones, helping reduce traffic volumes and encouraging commuters to shift to public transport.

Traffic Congestion Worsens Across Major Cities

Studies tracking traffic movement across India show how dramatically congestion has worsened in recent years. In many cities, average travel times have nearly doubled, and traffic jams now extend well beyond the traditional office rush hours.

The TomTom Traffic Index 2025 ranks Bengaluru and Kolkata among the slowest cities in the world, underscoring the growing strain on urban mobility. For commuters, this means longer travel times, unpredictable delays and rising fuel costs.

Economic Cost of Traffic Gridlock

Traffic congestion is not just an inconvenience-it also carries a heavy economic price. Earlier estimates by Uber and the Boston Consulting Group suggested that traffic jams in Delhi, Mumbai, Bengaluru and Kolkata together cause losses of around $22 billion every year.

Economists argue that these losses strengthen the case for congestion pricing. However, they also caution that such charges must be introduced alongside reliable public transport and effective enforcement to ensure that the policy actually reduces traffic rather than simply raising revenue.

Bengaluru Congestion Charge Proposal

Against this backdrop, Karnataka's Fifth State Finance Commission has recommended introducing a congestion charge in Bengaluru to tackle the city's chronic traffic problem.

The proposal suggests a system similar to London's congestion pricing model. Vehicles entering some of the city's busiest corridors-including sections of the Outer Ring Road and other major traffic routes-could be required to pay a fee.

The charge would likely be collected automatically using FASTag technology, allowing authorities to track vehicles electronically without requiring manual toll collection.

Learning From London's Model

London introduced its congestion charge in 2003, using electronic cameras to monitor vehicles entering a defined zone in the city centre. Motorists must pay a daily fee to drive within the zone, a policy that has helped reduce traffic while encouraging commuters to switch to public transport, cycling and walking.

The Karnataka commission believes a similar approach in Bengaluru could discourage excessive private vehicle use and generate funds that could be invested in urban infrastructure across the five city corporations under the Greater Bengaluru Authority.

Deeper Structural Problems Behind Traffic

Urban planners, however, warn that Bengaluru's traffic problems are not limited to a few busy corridors. They point to long-standing weaknesses in traffic rule enforcement, poor lane discipline and rapid growth in vehicle ownership.

Thousands of new vehicles are added to the city's roads every day, while oversight of driver licensing and vehicle testing has often been criticised as inadequate.

Some experts have also highlighted systemic issues in regional transport offices (RTOs), including allegations of corruption and concerns about how driving licences and vehicle fitness certificates are issued.

Frequent roadworks, utility digging and rapid expansion of the city's outskirts further add to congestion by creating sudden bottlenecks.

Scale of the Challenge

The scale of Bengaluru's traffic pressure is evident in the numbers. The city has nearly 1.5 crore residents and more than 1.3 crore registered vehicles, but only around 13,000 kilometres of road network to accommodate them.

This imbalance means that even small disruptions-such as accidents, construction or signal failures-can quickly lead to long traffic queues.

Transport experts emphasise that congestion pricing alone cannot solve the problem. They say policies must be supported by stronger public transport systems, including more reliable bus services, expanded suburban rail networks and faster metro connectivity.

Strict parking rules, consistent traffic enforcement and better road planning are also essential.

Without these improvements, experts warn that a congestion charge in Bengaluru could risk becoming another revenue measure rather than a true traffic solution.