A congestion tax is being proposed for nine roads leading into Bengaluru.

A comprehensive report titled Karnataka's Decade – Roadmap to $1 Trillion Economy recommended imposing congestion tax on vehicles entering Bengaluru through nine roads during peak hours as a measure to reduce traffic congestion in the city. Has been recommended. The report was jointly prepared by the Department of Planning, Program Monitoring and Statistics and the Federation of Indian Chambers of Commerce and Industry (FICCI).

The primary objective of the proposed congestion tax is to improve travel times for buses, cars and delivery vehicles during rush hour, while making users aware of the costs they impose on each other when traveling on congested roads. Currently, around 12 million vehicles enter Bengaluru daily, and implementing a congestion tax could generate significant revenue for the city.

The report recommends using the successfully implemented FASTag system from 2021 to collect congestion tax, ensuring ease and convenience for users. The revenue generated from congestion charges can be reinvested in promoting public transport, reducing pollution and increasing the appeal of the city center for pedestrians and cyclists.

Traffic jams in Bengaluru have considerable economic and environmental costs, with approximately 1.2 crore (12 million) citizens wasting 60 crore (600 million) person-hours and consuming approximately 2.8 lakh (280,000) liters of fuel per hour due to congestion.The share of private vehicles in the city increased by 280% between 2007 and 2020, reaching 8 million vehicles, while public transport infrastructure lags behind with a 48% low usage rate, struggling to meet growing transport demand.