To eradicate the traffic concern, the Government bodies should impose high taxes on automobile owners and insvest that fund to improvise the public transportation. This change would certainly help in decreasing the number of cars on the roads and enable national authorities to make a decent amount of money but there will be a few drawbacks too.
The main upside of putting up a higher tax on private motor owners is that it would decline the number of cars on the road. This is because a certain group of people would not consider buying vehicle anymore in order to save money. Thus, this would help in easing traffic concern. As per a recent survey by Times, if the price of the car increases by 10%, upto 40% consumers would let go buying a car. Furthermore, another advantage of this would be that the Government will still earn a huge sum of money through the reduced sales of vehicles which they can use to pace up the development of public transportation.
Turning to another side, there could be a few downsides of applying exorbitant taxes to vehicle owners. Firstly, it is reasonable to expect a significant dip in the sales of private vehicles because a lot of people will stop buying motorcars. With this trend, automobile industry may face an economic slowdown and a lot of workers would be at risk of losing their jobs. Secondly, an increased taxes on a car would certainly make it even harder for a low income level person to afford a car. This means, an average salaried person who is already burdened with the high income tax, would not be able to buy a vehicle even if it is necessary for him and his family.
To conclude, although applying high taxes on car owners to combat traffic issues has a few upsides such as lessen vehicle on road and high funds to the Government. However, high taxes would them less affordable for an average income person and may face a steep slowdown in car sales.
To eradicate the traffic concern, the
Government
bodies should impose
high
taxes
on automobile
owners
and
insvest
that fund to improvise the public transportation. This
change
would
certainly
help
in decreasing the number of
cars
on the roads and enable national authorities to
make
a decent amount of money
but
there will be a few drawbacks too.
The main upside of putting up a higher
tax
on private motor
owners
is that it would decline the number of
cars
on the road. This is
because
a certain group of
people
would not consider buying
vehicle
anymore
in order to save money.
Thus
, this would
help
in easing traffic concern. As per a recent survey by Times, if the price of the
car
increases by 10%,
upto
40% consumers would
let
go buying a
car
.
Furthermore
, another advantage of this would be that the
Government
will
still
earn a huge sum of money through the
reduced
sales of
vehicles
which they can
use
to pace up the development of public transportation.
Turning to another side, there could be a few downsides of applying exorbitant
taxes
to
vehicle
owners
.
Firstly
, it is reasonable to
expect
a significant dip in the sales of private
vehicles
because
a lot of
people
will
stop
buying motorcars. With this trend, automobile industry may face an economic slowdown and
a lot of
workers would be at
risk
of losing their jobs.
Secondly
, an increased
taxes
on a
car
would
certainly
make
it even harder for a low income level person to afford a
car
. This means, an average salaried person who is already burdened with the
high
income
tax
, would not be able to
buy
a
vehicle
even if it is necessary for him and his family.
To conclude
, although applying
high
taxes
on
car
owners
to combat traffic issues has a few upsides such as lessen
vehicle
on road and
high
funds to the
Government
.
However
,
high
taxes
would them less affordable for an average income person and may face a steep slowdown in
car
sales.