CHENNAI: If the Union government’s newly designed and structured Unified Metropolitan Transport Authority (UMTA) draft bill has its way along with the Urban Transport Fund (UTF), Chennaiites could end up paying additional cess per litre on petrol.
The Union Ministry of Urban Development, while seeking the State’s review of the newly proposed UMTA BILL (Generic) 2014, has suggested that additional cess per litre on petrol can be collected in the State as decided by the State government under the country’s Sales Tax Act.
Not only that, the Ministry has also proposed collection of cess by the State government with the registration of every additional car purchased in a family, at the rate of sale price of the vehicle.
The other proposals to raise Urban Transport Fund include generating funds by levying a ‘green tax’ on vehicles that are running past a certain number of years, to reduce the negative impact of vehicular emissions on the environment.
The proposals have come at a time when State government officials are still deliberating on implementing the Chennai Unified Metropolitan Transport Authority (CUMTA) Act, that calls for regulation and integration of mass passenger transport systems.
It is learnt that the new draft bill has been drawn up by consultants Deloitte Touche Tohmatsu and Voyants Solutions to propose a design for UMTA and Urban Transport Fund to assist cities in establishment of UMTA.
A communiqué from the Union government stated that the draft UMTA Bill (Generic) 2014, including UTF was prepared in consultation with various stakeholders and the view of the State is required to customise it to the needs of cities. It has also urged the State to submit its views by Monday.
Shell out more
How the fund will
put be put to use
Operations of the Authority, including payments for staff
Preparation of transport master plan
Providing targeted subsidies for inter-modal integration
Conducting studies in urban transport, including hiring consultants, researchers, and funding detailed project reports
Providing targeted subsidies for urban transport operations
Funding development of urban transport infrastructure