Road tolls and congestion charges proposed

IN addition to paying more for fuel, motorists would also be hit with new road tolls and congestion charges, if the report’s recommendations were implemented in full.

The commission wants vehicle registration tax – the once-off charge which applies to new and used imported vehicles – phased out over a 10-year period. In its place, the commission is recommending a “restructured” tax system for motor transport which would be more environmentally-friendly.

Under this new system, those who use their cars more would pay more.

Hence, the tax on registration would be replaced by a “tax on motor usage,” comprising two elements.

The first is increased fuel charges, including the proposed carbon tax. The second is “road pricing”, which would include congestion charges. The commission said the purpose of road pricing would be to “provide incentives to road users to use road capacity more efficiently”. Fees would be levied per kilometre according to factors such as time of day, location, distance travelled, or vehicle type.

“Experience in other countries suggests that a long lead-in time, with extensive consultation, is key to the successful implementation of road pricing,” the commission said.

Congestion charges, to promote the shift from personal car transport to public transport, would form part of the pricing plan. “Schemes in London and Stockholm have been successful. The London charge reduced congestion by 30% and traffic levels by 18% when it was introduced. The Stockholm charge reduced weekday traffic by 22% and emissions by 12%.

“Adequate preparation and the availability of public transport alternatives are generally seen as key issues in relation to the success of congestion charge initiatives.”

The commission said it also supported “targeted measures” aimed at reducing the usage of environmentally-damaging cars, and said consideration should be given to a scrappage scheme in this context: incentives would be given to motorists who traded in cars over 10 years old against low-emission, environmentally-friendly new cars.