Mumbai To Get London-Like Congestion Tax? Corporator's Push To Curb Traffic

A senior Bharatiya Janata Party (BJP) corporator from Mumbai has renewed debate over tackling traffic chaos and worsening air quality in India's financial capital with a proposal to introduce a congestion tax in central business districts.

Colaba corporator Makarand Narwekar has written to the Brihanmumbai Municipal Corporation (BMC) commissioner urging the civic body to design and pilot a congestion pricing scheme for single-occupant private vehicles entering high-traffic zones such as south Mumbai, including Fort, Nariman Point and Colaba, especially during peak hours.  

Under Narwekar's proposal, private cars with only the driver could face a levy of Rs 50-Rs 100 per entry during morning (8 am-11 am) and evening (5 pm-8 pm) commuter peaks. Fees would be collected automatically using existing FASTag and CCTV or ANPR (Automatic Number Plate Recognition) systems at entry points.  

Narwekar in the proposal stated, "A congestion tax policy would discourage unnecessary private vehicle trips, shift commuters toward public transport, reduce congestion and lower emissions, a growing concern as Mumbai's air quality has hovered in the moderate to unhealthy range in recent weeks and months."

He also points to projections that a congestion tax could raise Rs 200-300 crore annually, funds that could be channelled into initiatives to improve air quality and sustainable transport.  

Why the push now? Traffic, pollution and policy context

Mumbai's traffic and pollution figures have raised alarm among urban planners and health experts. Vehicle density in the city continues to rise year after year, contributing significantly to air quality woes, with many monitoring stations reporting unhealthy or at-risk air quality levels.  

In his letter to BMC, Narwekar referenced recent recommendations in India's Economic Survey supporting congestion pricing as a tool for urban mobility management, reflecting wider recognition in policy circles of the need to shift away from car-centric urban planning.  

His proposal calls for a pilot in south Mumbai, arguing that focused implementation would allow planners to assess feasibility, operational challenges and public reaction before wider roll-out.  

Global and domestic comparisons, lessons from abroad and India

Congestion pricing is not novel globally. Cities such as London, Stockholm, Singapore, and New York have long used pricing schemes to curb car traffic in crowded cores, with studies showing measurable reductions in congestion and, in some cases, improved air quality and transit use.  

In London, drivers pay a daily charge to enter designated central zones during business hours. Stockholm's congestion tax, introduced after public referendums, has been credited with lowering rush-hour traffic and boosting public transit ridership. Similar systems use technology to automatically bill vehicle owners based on entry and exit times in designated areas.  

In India, some discussions around congestion pricing have surfaced in other cities too. Mobility experts in Bengaluru recently discussed using FASTag-based tolling on high-traffic corridors such as the Outer Ring Road, though the state government later clarified no congestion tax was officially planned.  

Karnataka's example highlights that while the concept is floated among planners, it has yet to be put into force in Indian metros. Many argue that charging drivers without improving public transport options could unfairly burden commuters. The BMC and Maharashtra state authorities have not yet formally responded to the corporator's proposal, and any implementation would likely require detailed policy design, public consultations and legal vetting before being included in the civic body's next budget.