Maharashtra Proposes Congestion Taxes and Vehicle Restrictions to Combat Parking Shortages

Mumbai, 11th January 2025: To address parking shortages, traffic congestion, and pollution in the Mumbai Metropolitan Region (MMR) and other cities, the state government is exploring an overhaul of the current vehicular mobility system. Recent discussions between the transport department and Chief Minister Devendra Fadnavis have focused on potential solutions to these issues, following a presentation by the department outlining various proposals.

Among the ideas being considered is the introduction of mandatory parking facilities before registering new vehicles, both in private and public spaces. The government is also contemplating measures such as congestion taxes, vehicle restrictions per family, and limiting traffic in areas with severe parking shortages, including South Mumbai and other commercial districts.

On Friday, reports indicated that the transport commissioner’s office had proposed requiring motorists to submit a certified parking area (CPA) certificate before registering a new vehicle. Although still in the early stages, Fadnavis has instructed the department to consult with all relevant stakeholders before proceeding. Over the next three months, the department will consult with transport, urban development, and industry departments, as well as manufacturers and motorists, to discuss the proposal’s details and legal considerations.

Sanjay Sethi, additional chief secretary of the transport department, explained that consultations will take place over the next month to refine the proposal. He noted that apart from making the CPA mandatory, the government is considering imposing heavy taxes on vehicles and restricting car numbers per family. The discussions will also explore restrictions on vehicle entry in certain areas. The final decision will be made within three months.

Drawing on global examples, the department has studied urban policies from cities like Japan, Singapore, China, London, and Stockholm. In Japan, a “garage certificate” is required to purchase a car, while Singapore implemented a vehicle quota system in 1990 to control car growth. China uses a quota and auction system for car purchases, and cities like London and Stockholm charge congestion fees to manage vehicle numbers and reduce congestion.

A transport official suggested restricting car access to South Mumbai during peak hours, with motorists directed to nearby parking facilities, such as those at the Mumbai Port Authority. From these points, passengers could then use public transport to reach their destinations, with improvements to the public transport network seen as a key factor in achieving this.

These initiatives are expected to be phased in across designated areas, with the CPA plan anticipated to be easier to implement in Navi Mumbai.