Question

Question 1:

Why do people suggest an application of fuel tax as a substitute for Electronic Road Pricing?

Question 2:

Compare the impact between fuel tax and Electronic Road Pricing on road usage.

Question 3:

Provide one practical example of using fuel tax as a strategy.

Answer 1

Electronic road pricing is a system of electronic road tax collection system which many countries implemented to manage the traffic by road pricing which means direct tax is charged for use of road which include toll,distance based fees,time based fees, fees for entering certain territory,congestion charges,use of certain classified vehicle etc.this system use different traffic signs and road blockings spread out through the vast system of roads and use a simultaneous monitoring system where there is a need on techonology and man power.but its impact is that it helped is a decrease in road traffic and there in an increase in use of public transport in industrial and commercial cities. This methos is solely implemented for revenue generation.

Fuel tax is an excise tax imposed on sale on fuel such as petrol,gasoline etc and most countries impose fuel tax on fuel that is meant for transportation.people can suggest application of fuel tax as a substitite for electronic road pricing for the following reason

- its can b good source of revenue to the government as the tax can b collected at the point of sales from the fuel user rather the on using certain road.

- in this way number of vehicle on the road can b checked and monitored.

- for using a vahicle one have to pay fuel tax then pollution and other climatic conditions can also be kept under check.

-every one who own a vehicle and use road have to give tax.

Eg- suppose a person have a vehicle and use it for local transport within the area where there in no toll or road tax collection center..so practically he dont pay tax for useing the road by in fuel tax is introduced the initially have to pay tax for the purchase of fuel for his vehicle....use of road will be the secondary issue..he may or may not be charged with tax under road pricing system.